The Government wants to link to the IPC the increases in housing rents without limiting prices

The Government wants to link to the IPC the increases in housing rents without limiting prices

It would be mandatory for the first eight years of the contract, while the municipalities may incentivize with rebates in the IBI more moderation

   The Government does not want the legislature to end, which is already taking its last steps, without at least recovering the changes in housing that it introduced at the end of 2018 and that in just over a month ended up rejecting Congress. That is why it is likely that this Friday the Council of Ministers - although the approval could be delayed a week more - recover most of the measures of that decree with some changes; the main one is the link between the rent increases and the evolution of the consumer price index ( CPI ).

  That yes, that nobody expects a limitation to the prices of the leases. As they have been warning from the Ministry of Development , the "legal complexity" of a decision of such scope requires a consensus that does not currently exist. They estimate, however, that from autonomous communities -which have transferred housing competencies- and municipalities -with attributions of urban planning- they could work on actions to encourage specific ceilings.

Specifically, the decree establishes the possibility that local corporations can set a reduction of up to 80% in the rate of real estate tax (IBI) for those houses whose monthly lease does not exceed the average rent of the area where it is located . This measure, however, is the responsibility of the municipalities themselves, which should assess the impact of this reduction in the collection of a tax that represents more than 60% of tax revenues for most capitals.

The Executive would limit itself to reform the Law of Local Taxes to allow the changes, but the power would be of each city council. This measure is rejected by Podemos, who has been negotiating the text with the Government for days, to see it "harmful" to the municipal coffers. They also consider it "insufficient", to the extent that their budgetary pact with the PSOE is still not enforced to prevent "abusive price rises".

Despite this, since the formation led by Pablo Iglesias "close" the possibility of an agreement to support the decree in Congress , while the Government also negotiates to have the support of PNV and PDeCat, which positively valued that not Prices are limited. With all of them, he could achieve sufficient support in the Permanent Deputation to validate it before the April 28 elections.

One of the issues that all these groups see as positive is the "mandatory" introduction -and not voluntary, as it has been up to now- of the CPI as a reference for the updating of rental contracts, both in its first five years of duration-seven if the owner of the property is a company- as in the subsequent extensions of a three -year period at one time. This would recover the terms that were on the market before the changes that the PP Executive introduced in 2013.

The novelty with respect to the text approved on December 14 and which was in force for 35 days - the contracts signed in that period will continue to be applied - is that the deadlines to stop these extensions are increased , which would be automatic if it is not observed otherwise. advance. Thus, the tenants must notify at least two months before, while for the owners the previous period will double up to four years.

Without distinction of contracts

The tenant protection is also reinforced, eliminating the distinction made in the Urban Rental Law (LAU ) between registered and private contracts. In addition, to resolve them in advance by the "need" of the landlord, they should have set earlier in these agreements assessed : use it as their own home or their relatives, change personal circumstances ... In addition, for vulnerable tenants the Subrogation if there is a change of ownership will be forced.

Fomento only acts on prices in a statistical way , setting a maximum period of eight months to develop a new index -the first official- of average values ​​in rental housing, based on officially registered contracts and bonds that are deposited with public bodies . This will be known both the address and its main characteristics, additional guarantees and payment of supplies.

The main investment funds operating in the Spanish brick sector, such as Blackstone , have reiterated this week their warning that if the government "returns to present a decree injuring their interests - the companies would pay the bonds from now on of the real estate-, they will rethink their investment plans in the country ». They demand "greater legal security " and argue that they are not responsible for possible bubbles because they only control 3% of the housing rental market.

But Podemos accuses them of having multiplied the evictions , that with the decree they should always be communicated to the social services. If they determine later that the tenant is in a vulnerable situation the launch would be suspended for a month, or even three if the owner of the property is a company. In addition, the courts must be more precise when evicting, setting a date and time to proceed with the eviction.