Congress Approves the New Rental Act

3 April 2019 – Eje Prime

On Wednesday, Congress approved the decree law containing the latest measures to regulate the rental market. The PSOE, Unidos Podemos, Esquerra Republicana, PDeCat, PNV, Compromís and EH-Bildu all voted in favour of the law; the PP and Ciudadanos voted against it; and the UPN abstained.

The decree containing the urgent rental measures entered into force on 6 March after being approved by the Council of Ministers. The law limits increases in rental prices to the rise in the Consumer Price Index (CPI) and extends the duration of contracts from three to five years, amongst other measures.

The bill also grants town halls and autonomous communities the power to decide their own housing policies in accordance with their respective fiscal frameworks.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

INE: Mortgage Lending Increased By 10.9% In May

29 July 2015 – El Economista

According to the National Institute of Statistics (INE), the number of mortgages granted over homes recorded in the property registers amounted to 19,732 in May 2015, up by 10.9% from the same month in 2014. This data is sourced from public deeds signed in previous months.

With the YoY increase to May, residential mortgages recorded twelve consecutive months of two digit increases. Nevertheless, the rise in May was ten points lower than the one seen in April, when the number of residential mortgages increased by 21.4%.

The average size of a residential mortgage amounted to €103,922 during the fifth month of the year, up by 4.4% from the same month in 2014. Meanwhile, the total amount of capital loaned increased by 15.8% in YoY terms to exceed €2,050 million.

In monthly terms (May versus April), the number of mortgages increased by 4.6%, the lowest rise in five years, whilst the volume of capital loaned grew by 8%, compared with an increase of 14% one year ago.

During the first five months of the year, the number of residential mortgages signed increased by 20.1% with respect to the same period in 2014, with a 24% increase in the total amount of capital loaned and a 3.3% rise in the average mortgage amount.

Andalucía leads the ranking

By region, the autonomous communities that recorded the highest number of new residential mortgages in May were: Andalucía (3,717), Madrid (3,378) and Cataluña (3,085).

During the fifth month of the year, the regions that recorded the highest YoY variations in the number of new residential mortgages were: La Rioja (+43.4%), Navarra (+31.8%) and Galicia (+26.8%).

Meanwhile, the regions that loaned the most capital for the constitution of mortgages were: Madrid (€496.3 million), Cataluña (€371.4 million) and Andalucía (€323.4 million).

Mortgages increase over all properties

According to data from the statistical body, 29,712 mortgages were constituted over rural and urban properties (including homes) during the fifth month of the year, which represents an increase of 7.3% with respect to May 2014.

The capital of the mortgage loans granted increased by 15.1% with respect to the same month in 2014, to €3,736.8 million, to the extent that the average amount of the mortgages constituted over all properties amounted to €125,802, up 7.3% from May 2014.

The average interest rate for residential mortgages was 3.40% in May, compared with 3.82% a year earlier, whilst the average interest rate for all properties was 3.38%, with an average term of 21 years.

Mainly variable interest rate mortgages

Finally, 92.8% of the mortgages granted in May had variable interest rates, compared with 7.2% that had fixed rates. Euribor was the most commonly used reference rate, and featured in 92.2% of the new contracts signed. (…).

Original story: El Economista

Translation: Carmel Drake

Fotocasa: Second-Hand House Prices Increase In 15 CCAA

6 May 2015 – Expansión

The price of second-hand homes increased by 1.1% in April compared to March, after seven months of continuous inter-monthly decreases. The increases were widespread: they were recorded in no less than 43 provinces and 15 autonomous communities, according to statistics from Fotocasa and the IE Business School.

Moreover, house prices increased in April in 460 of the 733 municipalities analysed in this report – 63% of the total, i.e. two thirds. Meanwhile, prices remained stable in 17 municipalities and decreased in 256.

The average cost per square metre of second-hand homes amounted to €1,636 last month. In terms of the quarterly variation, the price of second-hand homes (those aged more than two years old) increased by 0.4% with respect to January 2015.

Second-hand homes got more expensive last month in 15 autonomous communities, i.e. everywhere except for the País Vasco (-0.2%) and Navarra (-0.6%). The greatest increases were recorded in the Canary Islands (up by 3% in just one month) and the Balearic Islands (+2.3%).

This index shows the stabilisation of house prices in Spain. The fact that prices are continuing to increase month after month is an indicator of a trend towards recovery.

The quarterly variation was 0.4%, something not seen since February 2010, a rate that exceeds the variation recorded 12 months ago by 1.8 percentage points.

In terms of the evolution of house prices by province, of the 43 provinces in which price rises were recorded in monthly terms, the highest growth was seen in Toledo (7.4%). Prices decreased in just three provinces: Vizcaya (-0.1%), Navarra (-0.6%) and Palencia (-0.7%). House prices did not vary in four autonomous communities.

Unsellable stock

Meanwhile, BBVA Real Estate’s Research Department said yesterday that the stock of unsold homes is going to decrease significantly, although around 300,000 homes are practically “unsellable”. Despite that, the sector’s contribution to GDP will amount to around 5% in 2015.

Original story: Expansión (by Juanma Lamet)

Translation: Carmel Drake