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Date Published: 30/03/2022

ARCHIVED - Small landlords in Spain will be allowed to negotiate rent increases above 2 per cent

ARCHIVED ARTICLE

The government in Spain has approved emergency measures to tackle the rising cost of living

<span style='color:#780948'>ARCHIVED</span> - Small landlords in Spain will be allowed to negotiate rent increases above 2 per cent

On Tuesday March 29, the Council of Ministers gave the green light to the Response Plan against the war in Ukraine, which will generate 6,000 million euros in direct aid and lower taxes for individuals and companies. In addition to a 20 cent per litre discount on fuel, the Spanish government has decreed that landlords won’t be permitted to raise rents more than 2% until June 30, although this timeframe could be extended depending on how the situation evolves.

However, small landlords won’t be tied to this regulation and will be allowed to negotiate rental increases in excess of the 2%. On the other hand, larger owners who have more than ten properties will be confined to the Royal Decree Law.

Now read: Inflation rises at fastest pace in 40 years in Spain

This rental cap has been widely criticised by the property sector, which has already warned of the pressure caused by increased prices and a lack of supply. According to the Association of Real Estate Agents of Valencia (Coapi) it is “inopportune” because “it does not contribute to encouraging owners to take new flats out on the rental market” at a time when the rental properties are already in short supply.

Likewise, the Association of Rental Housing Owners (Asval) has accused the government of further burdening owners and instead suggests that Spain should focus on limiting “the increase in underlying inflation, to eliminate the most volatile elements, such as energy and unprocessed food.”

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Image: Wikimedia Commons

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