Recently, a new housing law has been approved in Spain, which brings several new features that we should know. Among them is the insertion of new concepts for the legal system that we will hear frequently. It is important to know and understand them in order to know how they can affect us.
The first of these is the area recognized as a stressed market, which refers to places where there is little housing supply. These areas will be managed by the Autonomous Communities and the different local administrations.
On the other hand, there is the concept known as large holder, which is the one that exceeds 10 properties for residential uses. This new concept also includes those who have areas of more than 1,500 square meters for residential use.
This law is expected to enter into force as soon as possible before the May 28 elections. Now, it is time to know how this may affect us since the law becomes effective.
What other aspect is touched upon in the new housing law?
The new housing law also mentions the regulation of rental prices. This will apply to those areas considered as stressed, for existing and new, large and small landowners. This plan to avoid inflation increases had been set for 2023 at 2% for rents.
Now, with the new law, this cap will be increased to 3% in the coming year. On the other hand, INE has to establish before the end of 2024 an update of the costs of the different leases.
What will be the effects of this law?
Some experts are already talking about the different ways in which this Law may affect. In the short term, there may be a significant increase in the cost of leases in various locations in Spain. This will be due to the search for compensation, before this new law is approved in the country.
On the other hand, if we talk about the long term, the secondary effects would be related to the decrease in rents. It may be more profitable for owners to sell their properties than to rent out their apartments. Buying and selling may be on the rise, but the rental market will decline dramatically.
The first sighting of these changes in the prices of some rents has already been seen, according to data from Fotocasa. In March, the increase closed with a new record high of 9.7% in the market. This may increase in the coming months, according to some experts.
Are there any benefits for the homeowner?
Within this new Housing Law there are also bonuses or incentives for homeowners. These can be applied within the payment of personal income tax or corporate income tax.
These benefits will become effective each time a new reduced rent lease is formalized. In addition, if the new tenant is between 18 and 35 years old, penalties may also be applied. Penalties will be applied to those who have unoccupied properties for more than 2 years.
Information is necessary in this new housing law.
Now that you are aware of the new housing law and the effects it can produce,
information is essential
. From the moment this law becomes effective, it is necessary to be attentive to every change that occurs. This will prevent you from going through any penalties as a landlord or in a leasing process.