We can propose penalties of up to 900,000 euros for raising rental prices

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The proposal for the Law of Guarantee of the Right to Housing that United Podemos and eight other left-wing parties will register in Congress this Thursday proposes penalties of up to 900,000 euros for not applying in the housing rental contracts of stressed areas the limits in the price that are established.

The text, over 100 pages long, has been written by social organizations such as the Plataforma de Affected by the Mortgage, the Union of Tenants, Nobody Homeless and the unions CCOO and UGT.

The proposal regulates in detail the rental market and the sanctioning system for very serious, serious and minor infractions in terms of income containment, with fines ranging from 3,000 to 900,000 euros.

The approach -which is the one that Podemos has been defending in the negotiation with the PSOE of the Law for the Right to Housing- is that the autonomous communities, once they enable their official rental price benchmarks, They may declare areas of stressed residential market, with a maximum duration of 5 years, and determine a maximum rent in them.


These areas may be declared if the official reference index experiences a sustained growth clearly higher than the average for that community, if the average rental charge exceeds 30% of median income of the urban area or of the average income of the community or if the rental price has experienced a cumulative interannual growth in the previous five years at least three percentage points above the CPI rate of the corresponding autonomous community.

From there, in the rental contracts the agreed rent Between the parts may not exceed the official benchmark index corresponding nor the price of the last contract in force in the last 5 years or the average of the contracts of that period.

The proposal foresees an exception in which the lessor could increase the price up to the maximum limit of 10% if he performs works for improvement of the house.

The collection of rents that exceed the established limits will entitle the tenant 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.

Failure to provide that information, both in rental offers and contracts, and applying a rent that exceeds by more than 10% limits established will entail a “very serious offense”, punishable by fines of 90,001 to 900.000 euros.

If the rent that is applied exceeds by more than 8% limits, the offense is considered “grave” and punishable by fines from 9,001 to 90.000 euros, while if the income exceeds the limit by more than 4%, the offense would be “slight”, with a fine of 3,000 to 9,000 euros.

Evictions and supplies

In addition to rent regulation, the bill endorsed by Unidos Podemos contains measures to avoid evictions, guarantee gas, electricity and water supplies (with a social rate financed by companies), penalize empty homes (with surcharges of 75% to 300% in the IBI and mandatory transfer for large holders) and cancel mortgage debts due to over-indebtedness.

It also returns the Socimis to the general tax regime, enables control of tourist rental, extends the duration of the lease contracts to 7 years for individuals and 12 years for legal entities.

Pressure on the PSOE

It also establishes that fee corresponding to the procedures carried out by real estate agents or intermediaries, whether in purchase and sale operations or in real estate rental, will be satisfied by the seller or landlord, respectively.

With the registration of this initiative this Wednesday in Congress, United We can intend pressure the PSOE to include the limitation of rental prices in the housing law that they have been negotiating as government partners for almost nine months.


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