The housing crisis and the pressure on rental prices is accentuating in Spain and around the world. A new report from MVGM, one of the largest real estate managers in Europe, has just announced in a new report that rental prices in Madrid have grown by 12.2% year-on-year. The Ministry of Consumer Affairs has identified several that landlords regularly incur.
The Supreme Court has just overturned the state registry of tourist rentals, so it already stands: they will be the ones who will have to ensure compliance with the regulation. The situation is the same in much of Spain, but there is also a housing crisis in the rest of Europe and the rest of the world. But while in Spain it is the Ministry of Housing that requires town councils and communities to monitor their rental markets, in France the opposite is true.
Fifty councilors of French municipalities have just published a joint letter in one of the most read newspapers in the country, The World. Many of these first councilors won the last French municipal elections in March, where left-wing and progressive candidates made their way in municipalities such as Saint-Denis, the town of Paris where the Stade de France stands among other large recognizable infrastructures of the capital.
In their joint letter, the progressive French mayors demand something very simple: the extension of the rent cap in multiple municipalities. However, this measure, which in France has been in force since the formal approval in 2018 of the so-called ELAN law (French acronym for law), an omnibus regulation that introduced as an experimental element the cap on rental prices in stressed areas. experimental It’s over now: the caps expire in November of this year… and an extension is requested.
French mayors in favor of rent caps: “The results are evident”
“Since 2015, almost 70 municipalities have experimented with rent control to regulate rising prices. Eleven years later, The results are evident! The result for local authorities and tenants is more than positive. The system has the support of 87% of French people, according to an Ipsos survey, as well as all mayors, who have been very active in its implementation in their municipalities,” the councilors begin by writing.
In fact, they emphasize the idea that in the municipal elections the French “reinforced this desire” and many mayors who promised to implement or regulate rents “were re-elected by an overwhelming majority.” “Despite this, the system is now threatened with abolitionas the law stipulates its end in November 2026, and an undecided government has not included the continuation of rent control in its housing bill.
“In all affected cities, price increases have moderated and tenants who are victims of illegal rentals have recovered significant sums. Tenants in Paris, for example, have avoided an increase of almost 1,000 euros per year thanks to rent control, according to a recent study carried out by the Urban Planning Workshop of the capital and the economic research laboratory Cesaer”, they continue.
In fact, they go so far as to warn that rent control has become an “essential tool” for mayors. “The government and parliamentarians must shoulder their responsibilities, decide the future of rent control and give mayors the freedom to regulate their rental markets. At a time when all indicators of inadequate housing are alarming, allowing this system to disappear would have disastrous consequences for thousands.”
