Politics · Spain · 1 day ago
Spain extends some rental contracts and restricts purchases by large investors
Spain’s government has brought a housing decree into force that changes rules for renting and buying homes.
Tenants whose rental contracts end by 31 December 2028 can request an extra year, and may ask for a second year.
In areas officially declared to have strained housing markets, the extension may reach three years.
Landlords generally cannot refuse, with exceptions including needing the home for themselves or a close family member, or offering a new contract with rent cut by at least 5%.
The decree also restricts certain investors, including companies that own at least 10 homes, from buying homes or groups of unpaid mortgages for less than 70% of assessed value, with some exceptions for affordable rentals and vulnerable groups.
These restrictions are set to run until 31 December 2030.
The decree is expected to be confirmed by a parliamentary body on 16 October.
Spain has brought into force a decree that lets some tenants request extensions to rental contracts due to expire before 31 December 2028.
Tenants can request a one-year extension, with the possibility of a second year and, in designated pressured areas, up to three years.
The decree also restricts purchases of homes and mortgage portfolios by certain large investors at prices below 70% of their assessed value.
Some purchases at larger discounts are allowed if the homes are used for affordable rental housing or rented to specified vulnerable groups.
The decree is expected to be submitted for confirmation by Spain’s Congress Permanent Deputation on 16 October.
- Who
- Tenants with eligible rental contracts, landlords, and certain large investors.
- What
- A decree extends some rental contracts and restricts certain purchases of homes and mortgage portfolios.
- When
- It entered into force on Thursday; the article says it is expected to be confirmed on 16 October.
- Where
- Spain.
- Why
- The decree is described as protecting the social function of housing and expanding the supply of affordable housing.
This story does not have two clearly opposing sides.
protection of the social function of housing and the expansion of the supply of affordable housing
The first of the two housing decrees entered into force.
The decree is expected to be submitted for confirmation by the Congress Permanent Deputation.
The restrictions on certain investors’ purchases are set to remain in place until this date.
- Rental contract expiry
- Before 31 December 2028
- Standard extension
- One year, with a possible second year
- Extension in designated pressured areas
- Up to three years
- Investor purchase threshold
- Above 70% of assessed value, subject to exceptions
- Purchase restrictions end
- 31 December 2030
Sources
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