The INE has published this index for the first time, included in the Housing Act and from now on published monthly. The indicator will apply to contracts signed from May 2023 (when the law came into force) to “avoid disproportionate increases”.
The rental be revised from this year onwards they can upload to 2.20%according to the new reference index published on Thursday by the National Statistical Institute (INE) and which applies to contracts signed after the entry into force of the Housing Act (May 2023).
The law provides for a series of price control measures in the regulation of rental contracts and states that the INE will be responsible for defining a reference index for the annual update of contracts, to avoid disproportionate increases.
To comply with this law, the INE has defined this new index, called by its acronym IRAVwhich replaces the CPI as the main reference for updating the rental income of contracts signed after May 25, 2023. The calculation published today corresponds to the calculation of November 2024.
From now on, this index will be published monthly and calculated taking into account the annual percentage variation of the CPIthe annual percentage variation of the underlying CPI and the adjusted average annual percentage variation of both.
However, it is worth remembering that the measure applies exclusively to contracts signed under the Housing Act, that is, those that have taken place from May 25, 2023. In the previously signed contracts, the possible increase is still calculated based on the CPI.
For example, if the owner decides to apply the increase to his tenant, he will have to inform him of this. in writing, taking into account the terms and conditions included in the contract.
Two years with limits set by the Spanish government
Traditionally, rents have been adjusted to the CPI in most cases, but almost two years ago, as inflation skyrocketed following the Russian invasion of Ukraine, the Spanish government decided in April 2022 limit rent increases to 2% and later inside 2024, at 3%.
As we said, from now on these limits will disappear and the increases will be updated based on the aforementioned indicator.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
