Spain's Housing Ministry Updates Rental Price Index Amid Rising Rental Supply
The revised index will incorporate data from Navarra for the first time, reflecting a 4.9% increase in rental offerings.
The Ministry of Housing in Spain has initiated a public consultation period regarding a proposal to update the rental price index, which will include data from Navarra for the first time.
In 2023, the year the Housing Law was enacted, the habitual rental supply grew by 4.9%.
The proposal indicates a significant increase in residential leases following the approval of the right to housing law.
This has resulted in over 2.3 million leases, comprising 2,110,822 in collective housing and 273,751 in single-family homes, reflecting a year-on-year increase of 4.9% compared to the previous year.
The data provided are based on information declared for tax purposes and from the cadastral databases compiled by the Tax Agency's Services for Tax Studies and Statistics regarding habitual home lease agreements from 2011 to 2023. In addition to incorporating data from Navarra for the years 2021 to 2023, the update sources its information from the Statistics Institute of that autonomous community.
The updated resolution also revises the methodology of the State Rental Price Reference System (SERPAVI), which imposes rental limits in designated tensioned zones.
This system offers a range of rental prices for homes as a reference for setting rent in new lease agreements.
In areas classified as having a tense residential market, the upper limit of this price range will determine the maximum rent for new leases held by large landlords, as well as for all new rental agreements in those zones where properties have not been rented in the last five years.
The reference price system provides territorial data on housing types, both collective and single-family, and includes the number of homes, average monthly rent, average monthly payment, and average size for each analyzed year.
As part of recent measures announced by Prime Minister Pedro Sánchez, the Government is also working on a 100% income tax exemption for property owners who rent under the Price Reference Index, regardless of the properties' location in tensioned zones.
In 2023, the year the Housing Law was enacted, the habitual rental supply grew by 4.9%.
The proposal indicates a significant increase in residential leases following the approval of the right to housing law.
This has resulted in over 2.3 million leases, comprising 2,110,822 in collective housing and 273,751 in single-family homes, reflecting a year-on-year increase of 4.9% compared to the previous year.
The data provided are based on information declared for tax purposes and from the cadastral databases compiled by the Tax Agency's Services for Tax Studies and Statistics regarding habitual home lease agreements from 2011 to 2023. In addition to incorporating data from Navarra for the years 2021 to 2023, the update sources its information from the Statistics Institute of that autonomous community.
The updated resolution also revises the methodology of the State Rental Price Reference System (SERPAVI), which imposes rental limits in designated tensioned zones.
This system offers a range of rental prices for homes as a reference for setting rent in new lease agreements.
In areas classified as having a tense residential market, the upper limit of this price range will determine the maximum rent for new leases held by large landlords, as well as for all new rental agreements in those zones where properties have not been rented in the last five years.
The reference price system provides territorial data on housing types, both collective and single-family, and includes the number of homes, average monthly rent, average monthly payment, and average size for each analyzed year.
As part of recent measures announced by Prime Minister Pedro Sánchez, the Government is also working on a 100% income tax exemption for property owners who rent under the Price Reference Index, regardless of the properties' location in tensioned zones.
Translation:
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