Rental contracts updated during the month of December could increase by up to 2.29%, according to the latest data from the housing rent index, published this Friday by the National Institute of Statistics. This is the highest rate since the implementation of this indicator last January and concerns agreements signed after the entry into force of the National Housing Law. For example, a rent of around 850 euros per month could increase by 19.5 euros, or just over 230 per year.
Traditionally, increases were linked to inflation. The government increased the rent index to curb sharp increases in the CPI. The objective is thus to decouple the rent increases that owners can demand year after year from this macroeconomic indicator and “to avoid disproportionate increases” when inflation exceeds 2%.
This Friday the CPI data for November was published, which closed at 3%, a tenth less despite the rise in food prices but moderated by the drop in electricity. The underlying rate, which excludes the most volatile costs such as energy or fresh produce, rose to 2.6%, its highest value in eleven months. With these figures, greater than 2%, the correction mechanism is activated, using a formula that takes into account both these data and an estimate of the Economy and a coefficient based on market circumstances.
This month’s update, at 2.29%, is the highest since the index launched in January and marks six months of gains, up from 2% in May.
This update, limited to 2.29%, only affects contracts signed on or after May 26, 2023, when the state law took effect. The previous ones will continue to be linked to the CPI, so this increase will be 3%. The Ministry of Housing has launched a calculator, where you can consult the maximum increase that landlords can apply to their tenants, depending on the rental price and the date of signature.
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