The Spanish Government considers that rental prices in the stressed areas of Catalonia and Madrid should be much lower than those offered on some property portals. This is the conclusion drawn by the Ministry of Housing from the publication of the new state reference system for leases that was published yesterday and which points out that the prices offered in central areas of Barcelona can double those of the official system reference. The aim is to cool the market. In ten days, the index will come into force in the areas declared as tense, and Catalonia is the only autonomous community that has so far requested its application.
The gap between the prices of rental housing offered and the reference index published yesterday by the Ministry of Housing can be seen in the central almond areas of Barcelona or Madrid, explained yesterday the secretary of Housing Status, David Lucas. He gave the example of a rental property in a building on Carrer Sant Crist, which is offered at 1,827 euros per month, when the index predicts a reference price of 951 euros. Another example that stood out: a flat for rent on Carrer València, in the middle of Eixample, is offered for 1,600 euros a month, when the index points to a price of 984 euros. In some homes in Barcelona, ??the index cuts the benchmark price in half, while in Madrid it cuts it by up to 60%, government sources highlighted yesterday.
The rental price index will only be mandatory for large home owners (from ten properties, although the autonomous communities can reduce it to five) and for new contracts that join the market , as long as the property has not been rented in the last five years. Small home owners, for their part, will have to reference the rents in stressed areas to the prices of the previous contract and will have to revalue them to a maximum of 3%, as foreseen in the law in force. The system is set up on a general scale as a reference for agreeing prices between individuals, explained the Spanish Government.
In addition, the index offers a price range according to the characteristics of the home. The ministry takes into account the built surface, the state of conservation, if it has an elevator and parking, if it is furnished, the height of the building, the energy certification, if it has community areas, a swimming pool, concierge or special tracks, to offer a range of reference prices. The best homes can be rented at the top of this range, and the most modest, at the bottom, points out Habitatge. The Spanish Government has opted for this scale to, in its opinion, favor a negotiation between the tenant and the owner and also to prevent the poorest quality homes from being placed in the middle or high range, as explained by the Secretary of State of Housing, David Lucas.
However, the index comes out with a two-year lag, as it is referenced with tax data on personal income tax returns from 2022. When the 2023 fiscal year closes, it will be updated.
The rental price index has also meant knowing in detail where the highest rents were in 2022. Barcelona heads the list, with an average income of 830 euros per month per home, followed by Madrid, with 800 euros. Badalona (675 euros/month) and l’Hospitalet de Llobregat (670) are the sixth and seventh locations with the most expensive leases. In Madrid the rent per square meter was paid two years ago at 12.80 euros, while in Barcelona it was 12.60 euros.
The Spanish Government is now opening a period of ten working days for public consultation. From then on, it will come into force in tense areas and the autonomous regions will be able to apply it. Catalonia, therefore, will be able to apply it from March 13. The Ministry of Housing will not take into account the claims of the Generalitat, which asks to take into account its own index and that the reference prices are even lower than those of the state system.
