l Royal decree law on urgent measures in terms of housing and rent It is based on five objectives. On the one hand, increase in supply and moderation of prices. On the other hand, this rent decree seeks to increase the social housing stock, reduce evictions. And, finally, improvement in the accessibility of housing.
Increase in contract times. They go from 3 to 5 years for individuals and up to seven for companies. Some owners may prefer to remove their apartments from the market because if they need housing, if they do not leave it in writing, they will take more time to recover it.
The demand for the return of immigrants increases, while the supply can be reduced
Prices will not moderateNo because the demand will be higher and the offer may not. And another aspect, a part of the rental housing could go to the buying and selling market.
Limitation of guarantees. The landlord must raise his provisions before the risk of default. The owners are going to be much more demanding with the economic profile of the tenant.
IPC reference. It is a suitable point, as long as there are no obstacles in the rest of the points. The idea of creating a reference index, and the one that adjusts to it, has tax benefits, it may be fine and there will be owners interested in entering the wheel.
The increase of the social housing park for rent is a good idea. The doubt, who will do it?
Evictions. The time is increased to the detriment of the legal security of the landlord.
Create a social housing park It's a good idea, but who does? It would be good to clarify this point that the decree only lists, as it does with the accessibility section.
This post is just a summary of the opinion article by Luis Corral. All the reasons and proposals of the new rent decree, you can read them in depth in our collaboration in Invertia
Image: Madrid street @crdeprada