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We Can Condition The Budgets To Regulate Rents

It is expected but it does not finish arriving. The housing law is already seven months late as the disagreement between the two government parties persists over the control of rent prices . In full negotiations to approve the General State Budgets for 2022, the future rule returns to focus and rekindles the disagreement: for Unidos Podemos it will be a necessary condition to support the new accounts while the socialist flank tries to unlink both conversations.

The plans of the Ministry of Finance go through approving the Budgets in the first fortnight of October so that they can come into force from January 1, even President Pedro Sánchez has shown the intention that the rule goes to the Council of Ministers on the 5 of October. Somewhat more cautious but in those terms, Minister María Jesús Montero has expressed herself this Wednesday, who has asked to let the negotiations advance and has wanted to unlink the housing law from the agreement for the public accounts of next year.

After asking all the groups for “prudence” so that the negotiation comes to fruition, Montero has wanted to unlink both debates by emphasizing in the corridors of Congress that the housing law, although it will play a “leading role” in the draft Budgets will not enter into them since the PGE law does not have an accompanying rule and therefore all the matters that are regulated have to do with the status of income and expenses.

We can press from a new flank
They do not see it the same from United We Can. For the other member of the coalition, controlling these rents is essential to support the Budgets of 2022. That, and the establishment of a minimum rate of 15% in corporate tax, which is the other great stumbling block that divides the Executive.

The purple formation presses in speech and in practice. This Thursday he will register in Congress, together with other eight recurring partners for the Government (Más País, EH Bildu, ERC, CUP, Compromís, BNG and Coalición Canaria) a bill developed by organizations for the right to housing (Platform of Affected by the Mortgage, the Union of Tenants and Nobody Homeless) and the unions CCOO and UGT to guarantee the right to decent housing and that includes the regulation of rents to which the PSOE refuses.

Among the more than 100 pages of the Law of Guarantee of the Right to Housing, severe penalties are proposed for not applying the price limits established for stressed areas in the rental contracts.

The Law on the Guarantee of the Right to Housing proposes penalties of 900,000 euros for raising rent prices
The proposal, collected by Efe , regulates in detail the rental market and the sanctioning system for very serious, serious and minor infractions in terms of income containment, with fines of between 3,000 euros and 900,000 euros.

The text states that the autonomous communities, once they enable their official rental price reference indices, may declare areas of stressed residential market (if the average rental charge exceeds 30% of the average income of the urban area or if the rental prices have risen in the last five years at least three percentage points above the CPI rate for the region) with a maximum duration of five years, and determine a maximum rent in them.

On this basis, in rental contracts the rent agreed between the parties may not exceed the corresponding official reference index or the price of the last contract in force in the last five years or the average of the contracts for that period. There is only one exception for which the landlord could increase the price up to the maximum limit of 10%: carry out works to improve the home.

The collection of rents that exceed the established limits will give the tenant the right to demand the restitution of the amounts received in excess and in the housing rental offers in those areas, information on the reference price must always be included.

The cases in which this information is not provided, both in the rental offers and in the contracts, or a rent is applied that exceeds the established limits by more than 10% will be considered a “very serious infraction”, punishable by fines of 90,001 to 900,000 euros . If the amount of the rent exceeds the limits by more than 8%, the infraction will be “serious” and punishable by fines of 9,001 to 90,000 euros and if the rent exceeds the limit by more than 4%, the infraction would be “slight”. with a fine of 3,000 to 9,000 euros.

Rent regulation is the star measure of a bill that also includes others to prevent evictions , guarantee gas, electricity and water supplies (with a social tariff financed by companies), penalize empty homes (with surcharges of the 75% to 300% in the IBI and mandatory assignment for large holders) or establish that the fees to real estate agents or intermediaries in the case of sale or rental of real estate must be paid by the seller or lessor respectively.

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