The recent decision by the Catalonian Parliament to reject Decree-Law 6/2024, enacted on April 24, 2024, marks a significant shift in the region’s housing policy. Despite initial support from some parties, the decree was not ratified, rendering the legislation immediately void.
Context and Purpose of the Decree
Promoted by the Esquerra Republicana de Catalunya (ERC) government, Decree-Law 6/2024 aimed to address the regulation of seasonal rentals and room rentals in areas with high residential demand, known as stressed residential markets. These rental types were not adequately covered by state legislation, and the decree sought to integrate them into the rental price regulation framework.
The proposal received backing from ERC, the Comuns, and the CUP, but faced opposition from Junts, Vox, Ciutadans, and the Popular Party (PP). The Catalan Socialist Party (PSC) abstained from the vote, citing a lack of consensus and debate, as well as concerns about legal security and the effectiveness of the proposed measures.
Details and Objectives of the Decree
Decree-Law 6/2024 intended to address gaps in the regulation of temporary and room rentals. Temporary rentals, often used for tourism, work stays, or study, and individual room rents, were not subject to the rental price control established by state legislation.
For room rentals, the decree stipulated that the total rent from all rooms should not exceed the maximum allowed rent for the entire property. In areas designated as stressed residential markets, the decree imposed price limits on rentals.
The decree also clearly defined what constitutes a temporary rental and required that contracts specify the purpose or cause of the lease. Additionally, landlords were required to provide information about the rental price reference and the rent of the last active contract within the past five years, as well as whether the landlord was a major holder (large property owner).
Enforcement and Compliance
The regulation included a penalty system for those who failed to comply with the new rules. However, there was widespread non-compliance observed shortly after its implementation, particularly in listings on major real estate portals.
Impact of the Repeal
The non-validation of the decree has significant implications. Rental contracts signed during the decree’s validity are affected by the repealed regulations, but new contracts must follow the previous guidelines that were in place before the decree’s enactment.
Currently, Catalonia has 140 municipalities designated as stressed areas, impacting 6.2 million people, which represents 80.6% of the Catalan population. The repeal of the decree removes the additional measures aimed at more strictly regulating temporary and room rentals in these areas.
Reflections and Future Considerations
The repeal of Decree-Law 6/2024 introduces uncertainty into Catalonia’s rental market. With the removal of these specific regulations, the region will need to seek new strategies to address housing challenges, especially in areas with high residential demand. At Living Sitges, we will continue to monitor these developments to provide our clients with the most up-to-date and relevant information in the real estate market.
If you have any questions or need advice on how this repeal might affect your rental options in Sitges, feel free to contact us.
Article of Living Sitges Real Estate
