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HOUSING
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The Official Gazette of Spain has published that Arrasate, Pasaia and Zestoa have been strained for housing

There are already more than 40 municipalities in the CSC on the strained housing area list.

ARRASATE
Mondragon. Photo: EITB

The Spanish Ministry of Housing and Urban Agenda published on Monday in the Official Gazette of the State (BOE) that Arrasate, Pasaia and Zestoa  (Gipuzkoa) are strained areas of the housing market , allowing these municipalities to limit rental prices.

In the ACV there are already more than 40 municipalities recognized as tense housing centres, including the capitals of Bilbao, Donostia-San Sebastián and Vitoria-Gasteiz, and Getxo, Basauri, Ermua, Zarautz, Hernani and Zumaia, among others.



The resolution, published this Monday in the BOE, will take effect from tomorrow, 28 April, and will be in force for three years.

Article 18 ofthe Housing Act provides for the possibility of declaring an area as a tense area, which allows limits to the price of rent.

In order to be declared a tense area,atleast one of the two criteria established by the Housing Rights Act must be met. On the one hand, thecostof the mortgage or rent , plus the basic expenses and supplies,must exceed 30%of the average income .

On the other hand,thatthe prices of housing in the area have increased by 3% overthe CPI  recorded in that Autonomous Community in the five years prior to .

The declaration of a strained area makes it possible to extend a number of measures to facilitate access to housing, the most important of which is the possibility of limiting rental prices according to the price range established by the Ministry of Housing according to a reference index adapted to each area.

This limit shall apply to all flats on the market which have not been leased in the last five years, as well as to all contracts of large possessors, that is, persons holding five or more dwellings.

The declaration of a strained zone also allows three extraordinary one-year extensions to be established on contracts whose  has been completed, provided that certain conditions are met.

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