At the end of January 2023, a new package of measures to support the Spanish real estate sector came into force, approved by the Council of Ministers to mitigate the impact of record inflation, rising interest rates, crises in the global and national economy, as well as in the political aspect of international relations. The latter, in particular, concerns the impact of the armed conflict in Ukraine.
The main innovation of the latest package of measures embodied in the new Royal Decree will be a mandatory six-month extension of the validity of rental housing contracts in the event of the expiration of these contracts, whose expiration falls under any date before June 30, 2023. This obligation also applies to the period of tacit extension provided for in article 10.1 of the Spanish City Rental Law.
Such a commitment for the country's rental market is a natural continuation of the measures taken in the midst of COVID-19, which are aimed not only at supporting businesses and homeowners, but also the average consumer. In many respects, the wording of the new measures is identical to those adopted in 2020.
Such a package of measures, of course, caused discussion and questions, including in the sense that the state pays less attention to the rights and problems of sellers, homeowners and businesses and focuses too much attention on the consumer side. Nevertheless, the general rationale is identical for both periods — the population is under attack by both economic and non-economic factors.
Their incomes are falling, their expenses are rising and they are vulnerable even in the most basic needs, such as the need for housing. A massive increase in the homeless or credited population is not an attractive prospect for the Spanish authorities.
Simultaneously with the extension of lease contracts, the package of measures imposes a moratorium, until December 31, 2023, on the eviction of people, especially people in vulnerable situations who do not have alternative options for living than their current place of life. The deadlines for submitting applications for the right to compensation for homeowners affected by such restrictions from the state are also being extended.
The new measures can rightly be considered as a continuation of measures to support the pandemic period. Only time will tell whether the current recipes for dealing with problems in the economy will be effective.