Spain's Senate has given its final approval to a bill aimed at curbing rapidly increasing rents and addressing the issue of insufficient social housing. The bill introduces measures to restrict excessive rent increases, enhance tenant safeguards, and penalize landlords who abandon properties. The proposed changes include limiting rental increases, establishing rent caps in high-priced areas, and imposing sanctions on landlords with vacant properties. This bill is a response to the housing crisis and the aftermath of the 2008 financial crisis, which led to numerous evictions.
Last week, Spain’s Senate granted its ultimate endorsement to a bill designed to limit rapidly increasing rents and tackle the issue of insufficient social housing. This development provides a significant advantage to the government ahead of local elections at the end of the month.
The approved bill, supported by 134 votes in favour, 117 against, and one abstention, introduces measures to restrict excessive rent increases, enhance safeguards for individuals confronting eviction, and impose penalties on landlords who abandon properties.
Last month, the housing bill was approved by Spain’s lower house of parliament, known as the Congress.
Described by Prime Minister Pedro Sanchez as the first housing law introduced since Spain’s transition to democracy in 1975, the bill is a crucial component of a reform pledged to Brussels in exchange for European Union recovery funds.
Following the Senate’s vote, the Socialist Prime Minister expressed his enthusiasm on Twitter, stating that “Housing is no longer a luxury but a fundamental right.” He further described the occasion as a historic day.
The left-wing government of Spain aims to expedite the passage of the bill as law before the regional and local elections on May 28, which are considered crucial in determining the outcome of the general election later in the year.
According to the proposal, rental increases will no longer be linked to the consumer price index and will be permanently limited to three percent by 2024. A new index will be established by 2025.
The bill also grants regional authorities the power to identify neighbourhoods with exceptionally high prices as “stressed areas” and impose rent caps in those areas.
The legislation additionally imposes sanctions on landlords who keep their properties vacant, specifically targeting those who own more than 10 properties in stressed areas or five properties in other areas. Furthermore, it mandates landlords to provide precise eviction dates and times to tenants facing eviction, while extending the grace period for vulnerable tenants.
The issue of skyrocketing rents has generated intense controversy in a country deeply affected by the housing market crash following the 2008 financial crisis. During that time, numerous families faced eviction due to their inability to meet mortgage payments.
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