A year after the entry into force in Spain of the 2% brake on rent increases, a measure also adopted by Portugal, the effects do not seem to correspond to the objectives of the socialist Spanish government.
El Mundo reports this Friday that “the 2% limit for updating rental values has backfired: prices rose by nearly 9%, the available supply of rental properties fell by 17% and tenants’ difficulties accessing housing multiplied”.
The measure was introduced by the Spanish government of Pedro Sánchez to try to mitigate the rise in tenant rents in the face of rising inflation.
Around here, António Costa’s socialist Portuguese government has taken an identical measure to mitigate the impact of continued price increases on rental values. Last year, the executive passed Law No. 19/2022 of October 21, which sets a maximum cap of 2% for the increase in monthly fees to be charged by landlords in 2023, representing a reduction of 3.43 percentage points compared to the expected update of 5.43%, a coefficient calculated on the basis of last year’s inflation, which was set at 7.8%.
In Portugal, there are 922,810 leases, according to the 2021 census. Excluding the 151,620 relating to old pre-1990 long-term rents, which are still frozen, gives about 772 thousand contracts that could benefit from this milder 2% increase .
This measure also provides for compensation measures for landlords who are forced to comply with the 2% ceiling. For example, up to 30% of income derived from rent in 2023 will be exempt from IRS. In the IRC, 13% of the fee is tax-exempt.
It remains to be seen whether the 2% brake on rent increases in Portugal will have the same impact as on the Spanish market: instead of stagnating rental values, it caused them to skyrocket and led to a reduction in the available supply of houses for sale. rent. .
The balance of the measure is not yet known. However, the executive is preparing to pass another series of legislative amendments, entitled “More housing”, which, for example, stipulates that the rents of new residential leases will be subject to a maximum cap, which will be determined in accordance with the inflation of previous years, as well as with the medium-term inflation target of the European Central Bank (ECB), which is 2%. However, the limits only apply to homes that have already been on the market in the past five years; for those who are just now entering the rental market, there is no limit to the rent.
This package is in public consultation until 24 March. After that, the government will approve the legislative amendments in the Council of Ministers and submit them to the control of the Assembly of the Republic, with an absolute socialist majority.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
