The INE will publish this month the new index to update rental annuities starting in 2025

MADRID Dec. 1 () –

The National Institute of Statistics (INE) will release throughout this month of December the new index that will govern the annual update of lease contracts starting in 2025, thus complying with the eleventh additional provision of the Law for the Right to Housing.

This has been confirmed by INE sources to Europa Press, who have assured that this index is “practically done” and that it will be published “shortly”, so in 2025 this new indicator will be the reference for the annual update of contracts. for rent.

The Law for the Right to Housing establishes in its eleventh additional provision that the INE will define, before December 31, 2024, a reference index for the annual update of housing lease contracts, which will be set as a limit with the in order to avoid disproportionate increases in the rent of lease contracts.

In this way, a new mechanism will be created to update the annual rent of rental contracts, which this year has been extraordinarily limited to 3% due to the increase in prices derived from the war in Ukraine.

However, the limit on lease contracts to be renewed this year has not been the only limit that the Government has approved in response to the inflation crisis due to the war in Ukraine. Thus, the Executive has already limited, through a Royal Decree-Law, the annual update of lease contracts for 2022 and 2023 based on the Competitiveness Guarantee Index, which is capped at 2%.

Until now, article 18 of the Urban Leases Law (LAU), establishes that “during the validity of the contract, the rent may only be updated by the landlord or tenant on the date on which each year of validity of the contract expires. contract, in the terms agreed by the parties. In the absence of an express agreement, no rent update will be applied to the contracts.

However, it also points out that “in the event of an express agreement between the parties on some mechanism for updating monetary values ​​that does not detail the reference index or methodology, the income will be updated for each annuity by reference to the annual variation of the Index of “Guarantee of Competitiveness at the date of each update.”

In any case, the law indicates that the increase may not exceed the result of applying the percentage variation experienced by the Consumer Price Index (CPI) on the date of each update.

Therefore, the new index that will be released these weeks and about which INE sources have not wanted to indicate what it will consist of, will establish a new system to update rental income other than the CPI and the Competitiveness Guarantee Index.