The law to limit rental prices in Catalonia comes into force

[:en]The Parliament has approved the Law on urgent measures regarding rent containment in housing rental contracts with the aim of regulating the prices of new contracts in areas where there is a risk of insufficient supply of affordable rental housing.

According to this law, The price of the lease contract may not increase compared to the previous contract. – if it was signed in the last five years – and may not exceed the reference price index of the Generalitat.

Does it affect Vilafranca del Penedès and Vilanova i la Geltrú?

The law applies to all those Housing for permanent residences located in “tight market” municipalitiesThis is the name given to areas where the cost of rent exceeds 30% of the average family income.

Temporarily, a total of 1,000 items have been included in this list. 60 Catalan towns with more than 20,000 inhabitants, among which are Vilafranca del Penedès and Vilanova i la Geltrú.

Municipalities law protection of rent

Are there exceptions?

The following types of residential leases are excluded from the application of this law:

  • Leased before January 1st from 1995.
  • Subject to a Official Protection Regime (VPO).
  • Integrated into public networks insertion or mediation for social rental or in the Social housing fund.
  • Leased as compulsory social rent.

How will it affect renovated or newly built homes?

The law is different in the case of newly built homes or homes resulting from a major renovation process. In this case, The application of the rent containment regime will come into force within 3 years from the entry into force of this law.

What is the penalty for non-compliance with the law?

According to the Generalitat, Violations can be minor or serious, with fines of between 3,000 and 90,000 euros.. For example, renting above the Index price, falsifying the reference price or not including it in the contract entails minor sanctions.[:ca]The Parliament has approved the Rule of urgent measures regarding rent contention in housing rental contracts With the objective of regulating the prices of our contracts in the areas on which there is a risk of providing sufficient housing for affordable travelers.

According to this law, The price of the lease contract may not increase compared to the previous contract. – if it is going to be signed in the last five years – it will not be able to surpass the reference index of the Generalitat's prices.

Does it affect Vilafranca del Penedès and Vilanova i la Geltrú?

The law applies to all those habitats intended for permanent residences located in “mercat tens” municipalities, the charge for the traveler's payment exceeds 30% of the family income average. Temporarily, a total of 60 Catalan populations with more than 20,000 inhabitants, among which are Vilafranca del Penedès and Vilanova i la Geltrú.

Are there exceptions?

The following types of residential leases are exempt from the application of this law:

  • Abandoned leases from the 1st day of gen from 1995.
  • Subjects to an Official Protection Regime (HPO).
  • Integrations in public insertion or mediation channels pel social convertible or in the Fons d'habitatge social.
  • Leases with a mandatory social convertible.

How does renovation or new construction affect habitats?

In the case of new building habitats or habitats resulting from a large rehabilitation process, The application of the rent contention regime will come into force within 3 years to share the entry into force of the present law.

How is non-compliance with the law penalized?

According to the Generalitat, Infractions can be minor and minor, with fines between 3,000 and 90,000 euros.. For example, leasing above the Index price, falsifying the reference price or not attaching it to the contract implies legal sanctions.[:]

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