Practical guide to the new rental law 2021 in Catalonia

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Many families today cannot afford to take out a loan from the bank to buy a home and have no choice but to opt for renting. However, given such high prices, it becomes very difficult to continue in that situation for a long time. In addition to this, the demand for rentals decreases and those who own a home and want to rent an apartment cannot do so. It is for this reason that the Catalan government decided to limit the price of rentals according to the most stressed areas. But what is the new 2021 rental law in Catalonia like after more than a year of validity? We tell you.


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The rental price limitation law: how does it affect citizens?
For many citizens, it is difficult to access rental housing in large cities such as Chinese Overseas America Number Data Madrid or Barcelona, ​​even more so taking into account certain popular areas or districts. Without going any further, Barcelona is one of the cities where it costs the most to rent a home, far exceeding the average rental price in the rest of Spain. This makes it the second Spanish city with the highest rental prices.


On September 10, 2020, the Catalan Parliament approved the curb on rental prices not only in the city of Barcelona, ​​but in more than 50 municipalities . The new law had the favorable votes of CUP, ERC, Comuns and JxCat, whose objective was to prevent owners from raising the rental income of their tenants through a new contract.


Even if the price was already high, it had to be adjusted according to the average price of the area as established in the Price Index of the Generalitat of Catalonia. In this way, the rental price in a new contract will be the lowest taking into account the previous contract or 95% of what is set by the Generalitat price index.


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What constitutes an area with a tight housing market?
On September 20, 2021, Barcelona City Council approved declaring the city an area with a tense housing market .


The tight housing market area refers to areas where there is an affordable rental supply. In these parameters, the rental price cannot exceed the previous rental contract nor be above the reference index of the Generalitat of Catalonia.


The income limitation will depend on the contract
The new rental law 2021 Catalonia is based on a characteristic that generated a lot of controversy both in the world of politics and in the rental market. And not all contracts are affected in the same way. In fact, Law 11/2020 will not affect the renewal of contracts signed prior to the approval of the "area with a tense housing market."


Be that as it may, for a contract to be affected as agreed in Law 11/2020, it must meet a series of characteristics:


It is a lease contract for a home, not a commercial premises.
It must be the permanent residence of the lessee or tenant.
The area where the home is located must have previously been declared as an “area with a tight housing market.”
Which Catalan municipalities are affected by the rental law?
With the new 2021 rental law in Catalonia, there are 60 Catalan municipalities that are framed as a tense area for rent containment. For a municipality to become part of this list, it must meet the following requirements:





An average price with continued growth well above the average for Catalonia.
That the rental price is greater than 30% of the average family income.
That the rental price is greater than 30% of the average earnings of those under 35 years of age.
In addition to Barcelona, ​​among the municipalities that are declared as tense areas are, according to the Rental Law in Catalonia , Sabadell, Figueres, Manresa, Castelldefels, San Cugat del Vallès, Lleida, Sant Feliu de Llobregat, Tarragona, Girona, Cornellà of Llobregat or Vilafranca del Penedès.


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Advantages and disadvantages of the Rental Law after more than a year of validity
These measures of the new 2021 rental law in Catalonia created a lot of uncertainty, mainly due to the situation of a market weakened by the Covid -19 pandemic , although many people had placed high expectations in them.