He new rental update index It does not convince small owners, who consider that it will be detrimental to the market. This was expressed this Wednesday by the Confederation of Urban Property Chambers in a statement in which they assure that The new reference brings with it more legal uncertainty and will discourage the placing of apartments for rent on the market in a context in which the lack of supply in the face of high demand has skyrocketed prices.
“This index generates legal uncertainty and discourages supply in the rental market, directly affecting accessibility to housing,” warn small owners, who believe that “a practical freeze on rents could have catastrophic consequences for the sector.” The new cap, called the Housing Lease Reference Index (IREV) and developed under the housing law, limits how much the monthly rent can be increased after the annual review of the rental contract. This ceiling applies to contracts signed as of May 25, 2023 and is currently updated each month. set at 2.2%.
The Urban Property Chambers see the new mechanism as an “additional challenge” for small property owners, who say they are the “most affected” by market tensions and describe the current situation as “worrying.” In that sense, they are uneasy about what they consider a “complex” regulatory context and demand greater legal certainty to encourage landlords to put their apartments on the market. “We have had regulatory chaos, unpredictability, moratoriums and polarization for a long time”they lament, specifically demanding “regulatory stability” and “effective procedures” to reduce the “fear” of non-payments.
Small landowners also ask tax incentives to make it more attractive for landlords to rent their homes as habitual residencecompared to other more profitable formulas such as tourist or seasonal rentals. The Urban Property Chambers emphasize that these other formulas are also necessary, as is the case, for example, of temporary rentals for students and displaced workers. “We advocate for clear regulation that allows us to distinguish legitimate uses from fraudulent practices,” they point out, while urging the autonomous communities to “balance the interests of tourism and residential housing” when regulating tourist apartments.
Likewise, they demand greater and “more effective” public-private collaboration to manage the housing stock. Specifically, small landowners request aid for those who rent their homes to vulnerable tenants and for the rehabilitation of properties. “Despite the objectives set by the European Union for 2030, the Next Generation funds have not arrived with the necessary effectiveness and that is why we warn about the difficulties in undertaking the necessary reforms in an aging real estate stock,” they say in the statement released this Wednesday. .
Small property owners claim to be “aware” of the “serious” problem of access to housing that exists especially in large cities, but they warn that the debate is “polarized.” “Polarizing the debate leaves no room for understanding”they warn, calling for a “rigorous analysis to dismantle prejudices and dogmas.” In particular, they ask to counteract the “stigmatization” of small landowners. “They are not the problem, but a key part of the solution to access to housing. Without them, the rental market would not have grown in the last decade,” they say.
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