Rentals that are reviewed in March according to the new government index will rise seven tenths below inflation

The National Statistics Institute (INE) has published the third installment of the Housing Lease Reference Index (Irav), the indicator used from the start of this year to calculate the price increases that by law must be applied to rentals . If in its first two deliveries, both published in January although relating to November and December, the Irav was two and five tenths below inflation respectively, now it remains at 2.19%, a fact seven tenths lower than inflation last month.

That is, this will be the top to which housing leases that turn one year in March can be updated. Precisely, the government included this mechanism in the new Housing Law – with a lot of controversy – to avoid sudden increases in rental prices in inflation contexts.

Of course, there is one nuance and they are only subject to the limit set by the Irav the contracts that were signed after the entry into force of the new Housing Law, on May 25, 2023. The others will continue to review according to the IPC. That is one of the reasons for the opposition generated by the new mechanism, the comparative disadvantage to the one that submits the owners who have signed their contracts in the last three years.