The limitation of the increase in housing rents in 2022 was approved, in accordance with the provisions of Royal Decree-Law 6/2022, of March 29. This measure will only have an effect on housing leases subject to Law 29/1994, of November 24, 1994, on Urban Leases. Whose rent must be updated, because its corresponding annuity is fulfilled, between March 31 and June 30, 2022.
However, as has occurred with the measures approved during the pandemic, and if the current inflation situation continues, this measure could be extended in the coming months.
The Royal Decree does not make any reference to the retroactive application of the new regulation. Therefore, it does not affect those leases whose rent had been revised in the months prior to its entry into force.
Limitation of the increase in housing rents in 2022
With this new regulation, the application of the Consumer Price Index to the updating of leases is unlinked. The CPI was at 7.6% according to February data. Meanwhile the increase is restricted to the variation experienced by the Competitiveness Guarantee Index, which is 2%.
The Competitiveness Guarantee Index is the corrected data of the Harmonized Index of Consumer Prices of the Eurozone. It is calculated as the average of the CPI of all countries that have the euro. But corrected to adjust for the loss of competitiveness that Spain has accumulated since 1999.
In the event that the lessor is a large tenant, the rent increase will be that which results from the new agreement between the parties, without it being able to exceed 2% of the annual variation of the GCR, as of the date of said update. In the absence of this new agreement between the parties, the rent increase will be subject to the same limitation.
A large tenant is understood to be any individual or legal entity that owns more than ten urban properties for residential use. Or a constructed surface area of more than 1,500 m2 for residential use, excluding in all cases garages and storage rooms.
On the other hand, in the event that the lessor is not a large landlord, the increase in rent will be that which results from the new agreement between the parties. Thus, small landlords will be able to renegotiate with their tenants increases above the 2% annual variation of the GCR. In the absence of an agreement, the rent increase may not exceed 2% of the annual variation of the GCR, as of the date of such update.
