New rental price index for Barcelona
The **Housing Law** measure approved by the Government last May will come into effect next February in the 14 municipalities of Catalonia classified as stressed areas.
The **Rental Price Reference Index** is necessary to regulate rents for large landlords in the so-called stressed areas, which will now include those owning more than five properties.
The Housing Law stipulates that all rents in the so-called stressed areas will be regulated and capped in all cases, applying to both large and small landlords, as well as to contracts for properties already on the rental market and new ones.
The caps will be established, depending on the type of contract and property ownership, through indexation to the previous rent in force for small landlords—who may benefit from tax deductions if they lower the rent—and through the **application of the rental price reference index for large landlords** to prevent speculation and hoarding by investment funds.
These areas, in turn, may be declared by the competent administrations—voluntarily—when any of the following conditions are met: when housing costs account for more than 30% of household income in the area, or when prices have risen by more than three percentage points above the Consumer Price Index (CPI) over the last five years.
The Urban Leasing Law stipulates the following:
> **”6. In housing lease agreements subject to this law where the property is located in a stressed residential market area during the validity period of the declaration of said area under the terms outlined in Law 12/2023 of May 24 on the right to housing, the agreed rent at the start of the new contract may not exceed the last rent of a habitual housing lease contract that was in effect in the last five years for the same property, once the annual rent update clause of the previous contract has been applied, and new conditions that impose charges or expenses on the tenant not included in the previous contract may not be introduced.”**
> **”The rent may only increase, beyond what results from the application of the annual rent update clause of the previous contract, by a maximum of 10% over the last rent of a habitual housing lease contract that was in effect in the last five years for the same property, when any of the following cases are proven:”**
> **”a) When the property has undergone rehabilitation work under the terms provided in Article 41(1) of the Income Tax Regulation, completed within the two years prior to the date of the new lease agreement.”**
> **”b) When rehabilitation or improvement works were completed within the two years prior to the date of the new lease agreement, achieving a non-renewable primary energy savings of 30%, demonstrated by two energy efficiency certificates, one issued before the work and one after.”**
> **”c) When accessibility improvement works have been carried out within the two years prior to the date of the new lease agreement, duly certified.”**
> **”d) When the lease agreement is signed for a term of ten or more years or includes an extension right that allows the tenant to voluntarily extend the lease under the same terms and conditions for a period of ten or more years.”**
> **”7. Without prejudice to the above, in housing lease agreements subject to this law where the landlord qualifies as a large property owner under the definition established in Law 12/2023 of May 24 on the right to housing, and the property is located in a stressed residential market area during the validity period of said area’s declaration under the terms of Law 12/2023, the agreed rent at the start of the new contract may not exceed the maximum price limit applicable under the reference price index system, considering the conditions and characteristics of the rented property and the building where it is located. The methodological bases for this system and the collaboration protocols and data exchange with applicable state and regional information systems may be developed by regulation.”**
> **”This same limitation will apply to housing lease agreements where the property is located in a stressed residential market area during the validity period of said area’s declaration under the terms of Law 12/2023, and where no housing lease agreement was in effect in the last five years, provided that this is specified in the resolution of the Ministry of Transport, Mobility, and Urban Agenda, based on its justification in the declaration of the stressed residential market area.”**
