The Government has given the green light this Friday in the Council of Ministers a decree to amend the Act of Urban Leases (LAU) which will increase the periods of the leases and shall include other measures as referred to in the budget agreement signed with we Can that will compel reform five standards in total. Between what it collects, highlights spend three to five years the duration of rental contracts (and up to seven years if the landlord is a company) and to strengthen the obligation not to demand a guarantee exceeding two months deposit. However, the text that has been agreed by the Government leaves out some aspects from the training abode is considered to be « fundamental » to control prices, in special, some kind of mechanism to prevent exorbitant rents. The Executive is expected that the decree will be published next Tuesday in the official state gazette and, therefore, enters into force on Wednesday.
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After the Cabinet meeting, in the press conference later, the minister of Promotion, José Luis Abalos, has insured that are not covered by « measures of intervention in market prices ». That is to say: not to be fixed at least for the time maximum prices for areas as claimed by United we Can. What they leave out is definitely the promises that they made to the training? « This decree is not intended to integrate or all of the proposals of the PSOE and all the compromises that have been reached with other political forces. Includes the most urgent measures. You will have the opportunity to be fulfilled in the pending budget, » has settled.
Ábalos has been pointed out that the decree approved « sets out the ambition to start talking about housing policy as a right and its social function ». And has justified the urgency of the standard: « we Want to end with a drama that affects the life projects of the people, especially the youth », who are forced to share housing. Also want to put an end to the evictions of rent, which grew at an annual rate of 5%.
But the measures are not satisfied in anything we Can, preferred partner of the Government to take the reform forward. « The Government decree does not contain the most important measure of the agreement: prohibiting uploads of abusive rent, » he assured the secretary general of the party, Pablo Iglesias. « If you do not rectify, we will vote against, » he added in a tweet that has been finished off with the Latin phrase pacta sunt servanda (agreements are to oblige).
The main difference between We and the Government referred to point 3.2 of the budget agreement, which included the ability to enable the Councils « for the development of a price index of rent of reference » that allows to « regulate and limit the climbs unfair price ». The party of Churches understands that the modification of the LAU is the appropriate instrument to achieve it and that’s why they ask for that figure in the decree. Sources from the Ministry of Promotion, which depends on Housing, point out that in the covenant with We appeared as a point differential of which related to the amendment of the regulations of rents and that the agreed deadline was « through 2019 ». Understand, therefore, that there is a margin, although it does not rule out that it could be included during the parliamentary proceedings of the royal decree, which once in force shall go to the Congress to be validated within a month.
regardless of what that may be included in agreements later, these are some of the measures that picks up the decree that has been prepared by the Government:
Contracts long
The term of the leases, that the Government of the PP lowered to three years in the reform of the LAU of 2013, will be with the general character of five years, as already advanced by the Executive in July, shortly after arriving at The Moncloa. In addition, in the case in which the lessor is a legal person —companies, investment funds, etc.— the contracts will be held with a duration of at least seven years . The extensions implied contract, that the PP is also lowered and left in a year, it will again contemplate up to three years. This is the time by which you extend a contract after the expiry of the maximum period, provided that the lessor or the lessee does not express its intention of putting an end to the contract.
Guarantees limited to two months rent
At the time of the signing of the contract, the landlord may not require the new tenant a cosigner, the margin of the deposit, which exceed in two months the monthly income of rent « not to be concerned of contracts of long duration ». In these indeed may be negotiated for additional guarantees. Are limited and the demands, often abusive, many owners ask for additional month of security deposit.
To narrow the disbursements at the beginning of the contracts, the decree also points out that the real estate costs are borne by the landlord when this is a legal entity. This item is excluded « those expenditures that are incurred by the direct initiative of the tenant », explain sources of Promotion.
tax Aid, although very limited,
When you sign a rental contract official and register properly in the Administration, the landlord and the tenant may be exempt from paying the tax on patrimonial transfers and documented legal acts in this bureaucratic process. It is Holiganbet a measure with little impact, since it is very unlikely to pay these taxes in rental contracts between private individuals.
The decree also amends the Law Regulating Local tax authorities to modify the Tax on Real Estate (IBI), although in two of course very limited: when the landlord is a public body may exempt the tenant from the payment of this tax and the City may reward up to 95% of the IBI « in the homes subject to rental price limited ». In both cases, it will always depend of each Consistory, which are the competent bodies in that tribute, if it is subjected to these measures or not. It will also depend on each local authority to decide whether to increase the surcharge of the property tax (IBI vacant homes on a permanent basis (a measure already referred to currently because the introduced the PP in 2002, but « that was poorly regulated until now, » according to sources of Development) and to allocate the surplus to promote its stock of public housing, something that until now Councils could not do because they had limited their spending by the Law of Stability.
Protection against flats tour
includes another measure that had already advanced to the Executive months ago: it will enable the communities of neighbors for that, if you decide to three-fifths of the owners, may agree to limit or veto leases tourist in the building. For that, they modified the horizontal property law. A measure that, according to sources of Promotion, will apply only to new flats tourist and not existing because « not retroactive ».
Changes in the evictions of vulnerable households
it Also modifies the law of civil procedure to « reform the procedure of eviction » and that the vulnerable households have more protection. Ensures the Government that there will be « better coordination » between the justice and social services to prevent families to stay on the street without an alternative when they lose their housing. In particular, the judges shall notify the beginnings of the processes of eviction to social services. These will issue a report and, if alert that the people who are going to be expelled from their home in a situation of vulnerability, opens an extension of a month (or two when it is a legal person, requesting the release) to find a solution.
No price
« Welcome to the decree because it responds to the budget deal, but for us it is totally insufficient », they point out sources We know of the negotiations with the Executive. This was confirmed on Thursday to the last hour of the night would be this Friday the decree to the Council of Ministers, which was held without Pedro Sanchez because the president is in Brussels. These same sources insist that will be included in the decree, the reference indices of prices in order to limit the increase of rents, a measure which, they say, « has no economic costs ». « We’re going to fight in the procedure »; add those same sources.
you will Not have retroactive effect
the Other is the retroactive application of the extension of the leases, an amendment that « would have an immediate effect on the public, » and that in the formation abode believe that has lace legal if it is justified and it addresses properly. Would be that the extension of the terms of rental that collects the decree was to apply to contracts already in force. We may also want to set the requirement that the annual review of rents is made only through the CPI and other indexes that are usually less beneficial to the tenant. The extent contemplated already in the decree, but only for sheltered housing.
« do Not dare to touch, and to regulate the market in accordance with common parameters in all of Europe », a summary of the sources consulted, we Can face the question of why these measures have been on the table (and some of them are enshrined in the budget deal) finally do not appear in the decree of the Government. In any case, both parties agree that the negotiations will continue.
