Parliament approves limit on rent increases for new contracts

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The initial rent for new lease contracts for houses that have been on the market for the last five years cannot exceed the value of the last rent in the previous contract, was approved today in Parliament.

The measure, which is part of the More Housing program proposed by the Government, approved in general terms in the Assembly of the Republic on May 19 and which is being voted on today in special terms, was adopted with the votes in favor of the PS, the abstentions of BE and PCP, and the votes against of PSD, CH, and IL.

A 2% coefficient can be applied to the value of the initial rent of the new contracts, says the Government’s draft law.

In cases where the immediately preceding lease has not been updated according to the law, the automatic update coefficients of the three previous years can be added to the value, being considered 5.43% in relation to 2023.

This “tenant protection” measure is only imposed on contracts that exceed the general rent price limits per typology.

In the case of properties subject to “major renovation or restoration work, duly certified by the City Council,” the initial rent for new leases may be increased by “the amount relating to the corresponding expenses borne by the landlord, up to an annual limit of 15%,” adds the proposal approved today.

The More Housing program is being voted on in specialty, in Parliament, since 13:00 today. After an interruption of work for the plenary, the members of the working group continued, from 17:30, to vote the nearly three hundred proposals to vote.

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