Home Rental Prices Fall for Second Month

According to latest data from the National Statistics Institute, the price of renting a home in Spain fell by 0.1% in May, year-on-year, following the historic decline experienced in the previous month, its first in the comparable series, which began in 2002.

Rentals have thus registered their second month of declines and remain well below the general CPI which, although it moderated in May stood at an annual rate of 1.7%.

This second consecutive decline occurred shortly before the entry into force, on 6th June, of the new Rental Act, brought in to boost the rental market and give it greater flexibility, which includes giving freedom to the parties to agree on rental changes, from the third year of rental, without necessarily linking it to the CPI.

By region, El Mundo reported that the most notable declines were registered in: Navarra (-2.4%), Murcia (-1.5%), La Rioja (-1.2%), Madrid (-1.1%), Aragon (-0.9%), Valencia (-0.5%), Extremadura (-0.5%), Castilla-La Mancha (-0.5%), Andalucía (-0.3%) and the Canary Islands (-0.2%).

By contrast, the main increases were located in the regions of: Galicia (+1.2%), Ceuta (+1.1%), Melilla (+1%), Catalonia (+0.8%), the Basque Country (+0.7%), Castilla y Leon (+0.7%), Cantabria (+0.7%), Asturias (+0.2%) and the Balearic Islands (+0.2%).

With regard to housing maintenance costs, prices rose by 2.2% year-on-year, half a point less than the general index, and increased by 1.1% compared to the close of 2012.