The government reaches an agreement with ERC and Bildu on the adoption of the Law on Housing

This Friday, the government reached an agreement with CKD and EH Bild around the new one Law on housingwhich is expected to put rental price restrictions in the most congested areas, as shown by the formations. Details of the proposal will be released this Friday, they have progressed.

ERC representatives Pilar Vallugera and EH Bildu Oskar Matute will hold a press conference in the Congress of Deputies at 11:45 to explain the key points of the agreement that comes after more than a year of negotiations in Congress and which will be entrenched due to the reluctance of part of the Government to undertake market intervention measures.

Currently, limitation of rent increase (2%) that the CEO of Pedro Sánchez is deployed as part social shield cope with the sharp rise in inflation since the war in Ukraine. As the parties involved in the negotiations reported this morning, this upper limit could become a limitation of a structural nature when market conditions require it.

The law on housing is part of the commitments the government made with Brussels to obtain the fourth tranche of European funds for recovery, reminds Efe.

Despite the differences between PSOE and United We Can, the government was convinced that it could adopt this law before the start of the 28M campaign. Prime Minister Pedro Sánchez was directly involved in the negotiations to try to resolve the deadlock in which they found themselves until the ERC and Bildu announcement. Yolanda Díaz also participated in these negotiations.

The person in charge of the PSOE’s municipal policy, Alfonso Rodríguez Gómez de Celis, already presented the possibility of an agreement yesterday. As a rule, the regulation of rent prices will be in the hands of the communities, which is what PSOE wants PP to show in those it governs.

Rental restriction

In March, the Government’s intention to extend the upper limit of rental prices in 2024, raising the limit from 2 to 3 percent, was already revealed. AND a temporary measure until a new price index is availableas confirmed by the Minister of Education and PSOE spokesperson, Pilar Alegría.

The current upper limit of 2% rent increase was introduced on March 29 last year and was extended by the decree of December 27 for the entire year 2023.