The Government’s New Rental Act Limits Annual Price Increases to CPI

1 March 2019 – Eje Prime

On Friday, the Government approved a new Rental Act containing urgent measures for the rental sector, including a limit on annual price rises for new contracts to CPI. However, in the end, no IBI rebate incentive was included to reward landlords for maintaining rental prices below the reference price index.

The measure to limit rental price increases will take effect for new contracts signed from the date that the law enters into force.  Moreover, the law provides for the preparation of a state-managed house price reference index within eight months, which will be updated annually.

In addition, the law extends the period for extending rental contracts to five years, from the current term of three years.

Original story: Eje Prime

Summary/Translation: Carmel Drake

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