Lorraine Williamson
Catalonia is set to introduce a new law regulating temporary housing rentals, to address rising housing costs and improve tenant protection.
This move, which is expected to come into effect before summer 2025, positions the region ahead of other parts of Spain in efforts to curb housing market issues.
Challenges in the current rental market
The rise in the use of temporary rental contracts has led to significant concerns, particularly in cities like Barcelona. Many landlords are opting for temporary agreements to bypass regulations on long-term rental prices. This loophole has made it increasingly difficult for those searching for affordable housing, contributing to a tightening rental market.
Regulation of temporary rentals to prevent abuse
Under the new law, temporary rental contracts will be subject to rent caps, just as long-term agreements are. This includes room rentals, which will also face the same rent limits. The aim is to prevent the exploitation of temporary contracts as a means to charge higher rents and offer a fairer solution for renters.
The law will also stipulate that temporary contracts must clearly define their purpose. They should be for tourism, work, or study purposes, ensuring that these agreements remain genuinely temporary. The total income from renting out rooms will be capped at the maximum rent permitted for the entire property.
Penalties for non-compliance
Landlords who fail to comply with the new regulations may face substantial fines. These penalties could reach up to €900,000, depending on the severity of the violation.
Political support and business concerns
The proposal has received backing from several political parties, including the PSC, Comuns, ERC, and CUP. However, the law has faced criticism from business groups such as Foment del Treball and APCE, which argue that the new regulations could limit market flexibility. These organizations are considering challenging the law’s constitutionality, but the Catalan government remains committed to its implementation.
Aiming for fairer housing practices
Despite opposition, the Catalan government is determined to pass the law before summer 2025. This reform is part of ongoing efforts to address the housing crisis and create a fairer rental market for residents.