Rent cap to come into force in 140 Catalan towns and cities in February

A rent cap will come into effect in 140 Catalan towns and cities in February, according to Catalonia's territory minister, Ester Capella. 

Speaking in Madrid following a meeting with Spanish housing minister Isabel Rodríguez, Capella explained that they had agreed that the reference price index for rents, necessary to designate areas as "tense housing zones," will be approved and published in the coming weeks. 

"It's very good news," Capella said. "In February rent containment will come into effect in Catalonia."  

In a statement, Spain's Ministry of Housing said it plans to publish the reference price index for rents "during the month of February."

As explained by Capella, the rent cap will not be applied retroactively, and its application will vary depending on the number of properties landlords own.  

Capella said the agreement was "expected" and showed a certain working harmony with the Spain's new housing minister. She lamented, however, that the agreement on the reference price indexes had not come sooner. 

For their part, the Spanish housing ministry highlighted that the government's Recovery, Transformation and Resilience plan has transferred €298m to Catalonia for housing and regenerating neighborhoods, in addition to €126m for the promotion of social rental housing in energy efficient buildings. 

80% of Catalan population affected 

Last June, the Catalan Government expanded the number of municipalities with so-called tense housing zones from 60 to 140. It is in these areas where property owners will have to limit rents. 

Some 6.2 million people, 80% of the total Catalan population, live in one of these 140 municipalities, which include practically the whole metropolitan area of Barcelona; the cities of Tarragona, Girona and Lleida, significant parts of the coast, and some mountainous areas such as Ripoll, Puigcerdà, Mollerussa, Solsona and Torelló. 

According to the new regulation, new contracts cannot exceed the price of the last contract in force in the last five years, after the annual update, which is 3% for 2024. 

For homes owned by large-scale property holders (individuals or companies with more than ten urban properties for residential use), the rent cannot be higher than the reference price index. 

Tenants' union not celebrating yet 

The Tenants' Union (Sindicat de Llogateres) said that the rent cap in Catalonia comes "very late."  

"It seems that it will come into force in February, but we don't want to take it for granted," said spokesperson Carme Arcarazo, recalling that the housing law was approved eight months ago. 

The group said it is not "celebrating anything" until it sees the details and the fine print of the agreement. 

It questioned the new index that will be published by the Spanish government. "It could have holes, and it may not end up lowering rents as much as would be fair," said Arcarazo. 

Troubled history 

A rent cap has been a long-standing demand of housing rights activists in Catalonia.  

In September 2020, the Catalan parliament passed a law regulating rent prices but this was later mainly annulled by Spain's Constitutional Court. 

The Spanish government introduced its own – and highly contentious – housing law in April 2023.