Recently, the BOE has published the State Reference System for Rental Prices developed by the Ministry of Housing, pursuant to Housing Law 12/2023 of 24 May.
This law allows autonomous communities, in the exercise of their powers in urban planning matters, to declare a stressed area, understood as one where, among other criteria, the average burden of the mortgage or rent cost in the personal or household budget, plus basic expenses and utilities, exceeds 30% of the average income or average household income in that area.
In the case of Catalonia, 140 Catalan municipalities have been declared as «stressed areas», including Barcelona, Alella, Abrera, Sitges, Cambrils, Falset, Vic, Vilafranca del Penedès, etc. Therefore, a control on the rental market will be applied in the 140 municipalities.
Although Catalonia has its own price index, the State index applies.
The main scenarios that could arise in Catalonia are detailed below:
1. Property in Non-Stressed Area
Under the new contracts, the rental income will be freely agreed between the parties, regardless of whether or not the landlord is a large-scale landlord and regardless of whether or not the property has been rented out within the last 5 years.
2. Property in a Stressed Area, owned by a Small-scale Landlord, rented within the last 5 years
In new tenancy agreements, the agreed rent may not exceed the highest rent under a tenancy agreement for a principal residence that has been in force in the same property over the last five years, once the annual rent adjustment clause of the previous agreement has been applied, and no new conditions may be imposed that pass on to the tenant any charges or expenses not included in the previous contract.
3. Property in a Stressed Area, owned by a Large-Scale Landlord, rented within the last 5 years
The large-scale landlord must always apply the lower of the rent specified by the index or that of the previous contract.
A Large-scale Landlord in such stressed areas of Catalonia is considered to be any owner who holds 5 or more properties. This has been requested by the Generalitat, compared to the 10 properties set out in the Housing Act.
4. Property in Stressed Area, unrented in the last 5 years
The new rental reference index will apply to new contracts for flats that have been vacant for five years, regardless of whether they belong to large-scale landlords or not. In such cases, the agreed rent must fall within the ranges provided by the application and under no circumstances may it exceed the upper limit.
Finally, it should be noted that the declaration of a stressed area will cap the rental price in these areas for 3 years.
These are some of the most notable aspects that currently apply. Therefore, if you are interested in knowing all the details, you can get in touch with us and we will be delighted to help you.