The Government will take to Congress the limit of rentals before summer | Economy

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The government will legislate before summer to limit rental prices. This was announced today in the Congress of Deputies the Minister of Transport, Mobility and Urban Agenda, José Luis Ábalos. Although it is yet to be defined which legislative piece will regulate this control, the minister has advanced that the rule will enable municipalities and autonomous communities to put caps on the prices of housing rents provided they are applied over areas that are very stressed in prices and at times punctual

“Before the summer I will bring to this chamber an initiative to allow control of rental prices in those areas that have experienced exorbitant rises,” said Ábalos.

The limit to the rental price is contemplated in the agreement signed between Podemos and the PSOE for the Coalition Government headed by Pedro Sánchez. It will be applied in the way it was agreed at first, already in the 2018 budget agreement: it will be an exceptional measure for stressed markets.

To do this, the department directed by Ábalos is studying the most appropriate legal avenues. Enabling price control by local and regional administrations requires touching several laws, and the Government has not yet decided whether that specific measure will be included in the Law on Urban Leases, in the Housing Law it prepares or in a decree law.

Before launching this authorization, the Government must have the official rental price statistics ready. This is a measure that was already included in the housing decree of March 2019. Ábalos announced that this price index would be ready at the end of March, a commitment that this Wednesday has reiterated in Congress.

The minister has justified the measure, which other cities and territories in Germany, France or the United States have recently approved, in which rental prices have become “an extraordinary social problem” that “requires bold administrations to take equally exceptional measures” .

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