The controversial rule has been published in the OFFICIAL state gazette and entered into force on 26 may 2023
This law includes measures that aim to facilitate access to housing, regulate evictions, and limit prices of the rental in the “zones tensionades”
The media Law 12/2023, 24 may, which regulates the right to housing has already been published in the OFFICIAL state gazette and shall enter into force on the 26th of may of 2023. It has been a standard very controversial and media to which you have been several amendments, but has finally completed its parliamentary without too many modifications.
The goal of this new law is to increase the supply of housing at affordable prices, to avoid situations of tension in the market for the rental and support in the access to housing, young people and vulnerable groups. Below we explain the main keys of this rule:
1. Areas of the housing market “profitability under stress”: a new definition of great holder
The main novelty of the Law 12/2023 has been the introduction of measures to control the prices of rent, especially in “areas tensionades” and in homes owned by large holders.
It is expected that the competent Authorities may declare areas of the housing market tensionades in areas in which there is a special risk that the supply of housing is inadequate for the population, that is to say, when:
- (i) The load average of the cost of the mortgage or rental in the budget staff will be more than 30% of the median income of households
- (ii) The purchase price or rental of housing has experienced in the five years prior to the declaration of the area of market profitability under stress a growth accumulated 3 percentage points above the CPI
In the areas declared as “tensionades”, shall not be deemed large holders, the owners of 10 dwellings or more (as happens in the rest of areas), but that it will be understood as a large holder of the owner of only 5 homes.
For the calculation of the homes are only into account the urban property for residential use, therefore, to have a certificate of occupancy. Thus, it does not include commercial premises, car parks or warehouses who can also have the property.
2. Limits on the prices of the rental
In the “zones tensionades”, established highs in the price of the rental of new contracts that were signed after the entry into force of this act:
- In the cases of small business ownersthe rental price may not be higher than the rent of the contract above plus a percentage; that 2023 will be a 2% in 2024, 3% and in 2025 is still to be determined.
- If the owners are big holders, the income maximum is determined according to an index of containment of prices.
- In the areas that are not tensionades not established limits of prices.
With regard to the annual update of the income of rent, maintaining the limitation of extraordinary character of 2% of income for 2023 and is set at a maximum of 3% by 2024. In addition, it is expected that, by 31 December 2024, the National Institute of Statistics (INE), create a new index which replaces the consumer price index and to establish maximum in the increments.
3. Expenses at the expense of the owner
Another of the novelties introduced by the Law 12/2023 is that expected the costs of property management and formalization of the contract will be the sole responsibility of the owner. This means, that the committees of the agencies, the will pay for the owner and not the tenant, as is happening until now.
In addition, it established the prohibition of increasing the income through the inclusion of new homeowners, rates of litter or any other that has not been expressly agreed prior.
4. Measures of protection against evictions
Approved a series of measures aimed at blindar the evictions of vulnerable groups, so it will be more difficult to perform and will continue further in time than it came done until now:
- (i) Are prohibited evictions without a date and specific time
- (ii) include new extensions in the procedures for the release, with aplaçaments of up to two years
- (iii) establishes a system of arbitration to encourage agreements between arrendadors and tenants in a situation of vulnerability and, if you get to no, you will be given time to the social services to provide housing solutions
- (iv) It rejected the demands of large bondholders who try to recover a dwelling occupied by a person economically vulnerable, always and when you do not have conducted previously, a procedure of conciliation or mediation between the owner and the renter
5. Tax incentives
The Law 12/2023 expected tax benefits for the owners to reduce their income to their tenants. Specifically, the arrendadors person that rented housing in areas tensionades can get a bonus of 90% in income TAX if they reduce the income by 5% or more.
It also includes a deduction of 70% for the first rental of a dwelling unit to a tenant between the ages of 18 and 35 years, public administration or non-profit entities.
On the other hand, it should be noted that the reduction current of 60% in the net income of the rental in the IRPFF will be reduced by 10% going to be 50% for all arrendadors.
6. Boost the housing and public
It established a series of measures that aim to increase the supply of housing public in order to ensure accessibility to housing for the most vulnerable groups.
Among others, has approved the regulation of the parks, public housing to avoid sales operations in investment funds and has increased the minimum percentage for housing rental within the soil of subsidized housing.
