Home Rentals Getting Cheaper

July 17th, 2013

The price of homes for rent has again fallen by 0.1% in June, year-on-year, marking three consecutive months of declines, while, according to the National Statistics Institute, in the year to date, revenues have risen by 0.2%.

Thus rental prices continue to evolve well below the general consumer price index (CPI) which rose by 0.1% in June over May, and rose four tenths year-on-year, to 2.1%.

El Mundo reported that this third consecutive decline in rental prices coincided with the entry into force, on 6th June, of the Law on Flexibility Measures and Rental Market Development, which includes giving freedom to the parties to agree, from the third year of rent, updates to rents without necessarily being linked to the CPI.

The regions which registered the most notable declines were: Navarra (-2.2%), Murcia (-1.5%), La Rioja (-1.2%), Madrid (-1.2%), Aragon (-0.6%), Castilla-La Mancha (-0.6%), Valencia (-0.5%), Extremadura (-0.4%), Andalusia (-0.4%) and the Canary Islands (-0.3%). Rental prices in the Balearic Islands did not change.

In contrast, the main increases were recorded in Melilla (+1.2%), Galicia (+1.1%), Ceuta (+0.9%), Catalonia (+0.8%), the Basque Country (+0.8%), Cantabria (+0.7%), Castilla y Leon (+0.7%) and Asturias (+0.3%).

With regard to housing maintenance expenditure, prices rose by 2.1% year-on-year, in line with the general CPI index, and increased 1.2% compared to December 2012.

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