The BOE sends a notice on all rental contracts in Catalonia: red line

Very important notice from the Official State Gazette (BOE) on rental contracts in Catalonia. One of the biggest concerns of renters is the possible increase in the monthly rent they pay. In this sense, it is very important to be clear that this problem has already been addressed by the Government.

Food, energy, transport or leisure have suffered a significant rise in prices over the last year. And the rental of homes will not be left behind, although, yes, it has certain restrictions that will prevent the increase from being abusive.

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Índice
  1. The BOE indicates the limit that cannot be crossed with rental contracts
    1. The owners' strategy to make a profit
  2. Loss of purchasing power among young people

The BOE indicates the limit that cannot be crossed with rental contracts

Tenants of a rented house will not be able to suffer an increase of more than 2% in the rent. Otherwise, they would have the possibility to make a claim. Last March 29, the Government approved a limitation on the annual updates of house rents.

This measure will be extended, for now, until the end of the year. Until now, most contracts provided for annual increases using the CPI as a benchmark. Last March it already reached 7.6%, with the forecast that it would continue to rise during the rest of 2022, as it finally did.

Photo of a block of flats

| GETTY IMAGES

In view of this, the Executive was forced to take measures, which is why it decided to set a maximum of 2% per year in agreements that completed one year until 30 June last. This legal text is included in Royal Decree Law 11/2022 of June 25, which changed a previous one of March 29.

The initial intention is that it lasted only for a few months, but finally the whole year has arrived. So, until December 31, 2022, rent increases cannot exceed 2%. Instead of applying the CPI, the Guaranteed Competitiveness Index (IGC) is used. Above they determine a maximum of 2%, while below it is reduced to 0%.

In the case of landlords who are not senior tenants, there is the possibility of agreeing with the tenant a higher rent increase. Of course, there must be an understanding between the two and it must be accepted by both parties. In the case of senior lieutenants, in no case can this increase exceed 2%.

The owners' strategy to make a profit

In recent months, the price of rental housing has risen significantly. Especially in the big cities, where you can see how the offer is getting smaller and smaller and the demand is growing, which causes an increase in prices.

A key in the door of an open house

| Pixabay

Many landlords who have a rented house have tried in some way to get around the limitations of the Government. They had determined a maximum increase of 2% of the income, but they have decided not to renew the contracts when they end. In this way, they have the possibility of signing a new one, with an income more adapted to the market. Thus, they can charge much more without having to be subject to the restrictions imposed by the administration.

Loss of purchasing power among young people

Many of those who turn to rented flats tend to be young, with limited resources and sometimes forced to share a house. Without a doubt, it is a very vulnerable group, punished by the country's continuous crises. They have precarious salaries, and more since the crisis of 2008 broke out.

In this period, the average rent has grown eight times faster than the wages of young people. The average gross salary of the population between the ages of 25 and 34 rose by 4.6% between 2008 and 2020, according to 20 minutes. However, this increase did not match the one experienced with the price of housing. The average house price soared between 2008 and 2020 by 38.5%, according to the portal idealistand the square meter went from 8.1 euros to 11.3.

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