Rental Royal Decree may worsen the renting situation in Spain, according to ASPRIMA

Rental Royal Decree may worsen the renting situation in Spain, according to ASPRIMA


ASPRIMA considers that the Royal Decree doesn’t promote the sort of offer that could moderate prices and persecutes the owners who might be induced to remove their houses from the renting market or restrict them to tenants with sound finances.

ASPRIMA considers that the Royal Decree should have been approved through dialogue and agreement among all the sector’s players, «and that the clarity and sustainability of the regulation are fundamental elements to guarantee a true legal safety within the sector».

To act in the free market without a measure related to social and protected rental housing might cause considerable distortion in the market, according to ASPRIMA, who considers that «it is not convenient, neither for the market nor for society, to intervene in the rental price’s increase times, which should take place in accordance with the CPI. In the case of individual persons, it goes from three to five years and in the case of legal persons it goes from five to seven years, a distinction which makes no sense, since the nature of the housing rental service is rental not ownership».

ASPRIMA highlights that among the measures presented in the text, the establishment of a price index, although it might bring some transparency, it may also impose limitations on the free market since it would discourage the housing offer and as a consequence, would increase prices.

ASPRIMA advocates once again the need to reinforce legal and normative safety for the sector, which can guarantee a real contractual balance between landlord and tenant. «The clarity and, above all, the long term sustainability of the regulations are two fundamental conditions for both parts, landlord and tenant to benefit from their contractual agreement. This becomes even more relevant in a Royal Decree such as the current one which contains a large amount of restrictions which might, ultimately, shake the balance between both parts».

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