Real Estate Agents believe the 2% extension will affect landlords

For idealista, the extension of 2% in the rental limit during 2023 will reduce the offer and raise prices.

Real Estate Agents believe the 2% extension will affect landlords

For idealista, the extension of 2% in the rental limit during 2023 will reduce the offer and raise prices

The General Council of Official Colleges of Real Estate Agents (Coapi) of Spain considers that the 2% extension of the rental limit throughout 2023, as the Government and Bildu have agreed on Tuesday, will affect many landlords, Reduce your profit margins with rent.

The member of the General Council of the Coapi of Spain, Ángel Martínez León, maintains that "the owner cannot be held responsible for the lack of rent in Spain" and demands that the State "take responsibility".

The General Council of the Coapi accuses the Government of "interventionism" and points out that the extension of the limit on rental income will cause more uncertainty in the real estate market.

Like the Coapi, other agents in the sector have reacted to the government's decision. Thus, from the idealist real estate portal they describe this extension as "terrible news for rent".

"The Government once again leaves the rise in inflation on the shoulders of the owners and does not offer them any compensation in exchange," says the spokesman for idealista, Francisco Iñareta.

The real estate portal insists that the lack of supply will worsen and the rental price in the large markets will be pushed up.

"It will be beneficial for all the families that are already renting, but it will have disastrous consequences for those others that are looking for it or will be looking for it in the coming months," adds Iñareta.

Along the same lines, the Rental Negotiating Agency (ANA) believes that it is a "serious mistake to extend" said measure.

The general director of ANA, José Ramón Zurdo, points out that the 2% limit will cause a "rise in prices, less supply and more requirements for tenants to rent."

"This measure of intervention in the rental market, to freeze it, is a clear message to owners, both individuals and companies, to tell them that they will not have any compensation for the loss of purchasing power, and that the social rental housing policy of the Government is non-existent, and all the burden falls on the shoulders of the landlords", estimates Zurdo.

ASVAL SEES IT "UNACCEPTABLE" AND ASKS FOR COMPENSATION

For the Association of Rental Home Owners (Asval), the extension is "unacceptable" since it means "the deprivation of property rights to more than two million rental home owners in Spain."

Asval also misses compensation for these measures and regrets that the owner is charged with "the social problem of housing." In this sense, they defend that landlords are "sensitive to the problems of their tenants" and usually negotiate "beneficial agreements" with them.

This association recalls that the owners "also suffer the rigors of inflation and see their bills increase due to the increase in prices."

Like other agents in the sector, they believe that this measure discourages rental investment and will divert supply to the sales sector.

In addition, they remember that this 2% limit was raised, at first, as "a temporary and exceptional measure".

For their part, the tenant unions explain that this measure is "a false limitation of rents", since "no limit is placed on increases in renewals or in new contracts".

These unions demand that the Government "stop perpetuating the structural problem of housing and approve, once and for all, a real regulation of rents."

"It is urgent that prices are frozen and rental contracts can be mandatory extended to avoid the eviction of thousands of tenant households," they added in a statement.

EH Bildu has confirmed its support for the General State Budget (PGE) after having reached a global agreement with the PSOE and Podemos which, among other points, will extend the 2% limit for updating rental income throughout 2023.

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