Andorra la VellaJosep Maria Pla, the president of the Institut de l’Habitatge, appeared this Thursday at the Economy committee to provide information on the organization’s management during 2023 and 2024. During part of the appearance he proposed a plan related to a modification of urban estate leases. As explained by Plan, it has been possible to detect that a new balance must be found between the rights of tenants and those of landlords. The situation generated by the rent extensions that are in force entail two problems for the lessee. The first, that they are temporary and that, therefore, a long-term answer cannot be given and that people are stuck in the housing they occupy because when they leave the price they can find for a new property will probably be higher. As for the damages to the lessor, he points out that there are owners who charge less than the amount to cover the costs of managing and operating the home. The president also says that the fact that 2027 is the year in which the freeze ends and an election year is a factor that worries them.
The National Housing Institute’s proposal proposes two axes. First, that a limitation be introduced to the increments at the end of the contract between the parties and with new parties. In this way, as Plan explains, the pressure of wanting to end the contract would be avoided because the applicable increase would be the same. In addition, if the limitation of the increase is applied and the contract with the lessee is not renewed, there is no longer a block when accessing a flat because they will find more regulated conditions. Second, to give the possibility to the owners that, in the event that with the increase they cannot generate a minimum return, the price can be increased slightly. As Plan explained, a mechanism would be created so that the lessor could justify that they do not arrive.
Pla has assured that the idea is to take the proposal to the National Housing Commission so that it can work with the parties, that the commission will make a proposal to the Government and that the executive will give the procedure to the initiative it considers.
