2019, legislative changes in rental
For almost 20 years, the Urban Leasing Law was hardly modified. Between 1994 and 2013, the legal regime that regulates rents was practically the same and, at the time, was the one with the greatest consensus among the different actors involved. It is in 2013 when the Law on Flexibility Measures and Promotion of the Rental Market was approved.
Since the approval of this LAU, which reduced the lease to three years and proposed express eviction, there have been numerous modifications to this legal text. In 2015, it was the Law on the Deindexation of the Economy that influenced the rent legislation, by allowing another reference index to be used to update income. In 2018, a Royal Decree-Law was passed, which was knocked down shortly after by Congress and in March of this year a new Royal Decree-Law was passed, currently in force.
The approval of different legal texts has marked the evolution of the rental real estate market during the year 2019. In just three months, the contracts had to be drafted according to what was indicated by three different legislative frameworks (Royal Decree-Law 21/2018 of urgent measures in the matter of rent, Law of Measures of Flexibility and Promotion of the Market of the Rent of 2013, Royal Decree-law 7/2019 of urgent measures in the matter of rent).
Since last March, the rental agreements have a minimum duration of five years, the notice to terminate the agreement is greater (the landlord has to notify four months in advance, while the tenant has to do so with two), there are limitations in the additional guarantees and modifications have been made when launching.
The prices go up, the offer is reduced
The year that now ends has also been marked by all aspects. Like what happened in the previous annuities, the prices of rental housing have continued to rise. Although the price increase has been more pronounced in the more developed markets, the upward variation has also been noticeable in most of the Spanish towns.
With regard to the offer, it has suffered throughout the year 2019. The reasons are varied. On the one hand, the growing demand is making the floors offered less and less time in the market and, on the other, the latest legislative changes have generated greater insecurity among landlords.
Undoubtedly, the shortage of supply and the increase of people interested in residing in a rental property, is one of the main reasons for the rental price to continue rising.
The insecurity grows among the owners
During this 2019 we have also known how the concern of the owners when renting a home grew between January and June by 25%, compared to the data recorded in the second half of 2018. Specifically, three out of four owners feared suffering a case of late payment
In the study carried out by File of Tenant Tenants, he pointed out how legislative changes have been one of the main reasons that have generated insecurity, mainly due to the limitation of additional guarantees and protectionist measures towards tenants.
The delinquency continues being the main problem of the rent
Last but not least, one more year delinquency continues to be the main headache among landlords. Non-payments in the first six months of 2019 have increased by 6.42% on average throughout the national territory.
To avoid late payment and possible damage to the property, during this year the landlords have sought other alternatives. Thus, during these months the number of consultations to the File of Tenant Tenants by individuals and real estate professionals has multiplied by four.