Thursday, August 13, 2015

Increase in rents frozen for the second year – publico





The rents for housing should be no increase next year if confirmed to virtually residual variation of the consumer price index (CPI) homeless in the last twelve months. It is with the value of this coefficient in August, calculated by the National Statistics Institute (INE) that by law, the annual variations in income are defined. This variation should be below 0.1%, so the income will be practically frozen for the second consecutive year.


                         Already in 2014 – and for rentals that are in place this year – the negative inflation dictated a zero increase in rents, something that only happened also in 2010

The universe to which it applies. Income from this adjustment factor is very high, and reaches more than 700,000 leases, according to the INE were concluded after 1990, a liberalized regime. But also affects the so-called old lace, whose landlords have not activated the extraordinary increase mechanism provided for rents in the New Tenancy Scheme, subject to revision in 2012.

The final value of the average change in the CPI excluding housing will still be confirmed by the INE at the end of August, but is forecast to be similar to that recorded in July, and it has set in 0.06%. What, if confirmed, and applying this coefficient update to contract an income of 500 euros, the increase in income would give about 30 cents. An amount not paid the letter seal that, by law, landlords would have to inform the tenant increased income.

The deadline for publication in the Official Gazette the annual rate update rents is 31 October.



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