Most stressed areas vote against the rent cap.

In nearly half (49%) of the approximately 300 municipalities that meet the criteria to be declared stressed residential market areas, according to the idealista study, the winner of the last municipal elections on May 28th was the Partido Popular (PP). This party has already announced its refusal to apply rent controls. If we include other parties that have expressed opposition to the rent cap, the figure rises to 53%, while in only 39% of these locations was the winner a party that supports rent limits, primarily the PSOE.

Some of the measures included in the new Housing Law, in force since last 26 May, appear unlikely to have any effect following the results of the recent regional and local elections held on 28M. While a 2% cap on rent increases for lease renewals has been in place for over a year, set to rise to 3% in 2024, one of the flagship policies of the new regulation has effectively been rendered meaningless: the designation by the autonomous communities of stressed residential market areas, which would impose limits on new rental contracts in those areas, among other measures.

The regional election results confirm that most voters reject rent price caps and tighter control of the rental market. This stance is reinforced by the local election data, especially in areas that would meet the requirements to be classified as stressed residential market zones.

According to a study by idealista, southern Europe’s real estate marketplace, of the 291 municipalities in Spain where this measure could be applied, in 53% the most-voted party opposes rental market controls. In fact, 49% of these municipalities voted for the PP, the main opposition party, which has openly rejected any form of intervention in the rental sector. Meanwhile, in 39% of these towns and cities, the winner of the local elections was a party that supports rent limits, mainly the PSOE. The remaining 8% correspond to local lists that have not expressed a position on the new Housing Law.