The Catalan Constitutional Court annulled eleven articles of the Catalan Rent Containment Law of 2020. This law, among other things, placed limits on the rental of housing in areas with high prices or so-called “stressed” areas.
The reason? The appeal of unconstitutionality filed by deputies of the Popular Party was upheld by the judges by partial unanimity.
The appeal alleged that the Generalitat de Catalunya invaded state competences by approving this housing legislation. This affected 60 municipalities throughout Catalonia.
Thus, this Law will cease to be in force in the next few days when the BOE publishes the annulment ruling.
Who will be affected by the annulment of the Catalan Rent Containment Law?
The Constitutional Court explained that the ruling will be enforced on leases that are signed from the moment the annulment is made official, but not on those that are already in operation.
As a result, the cancellation will not affect the 170,000 contracts that had already been signed during the regulation and remain as they are: they will not increase in price until they are finalized.
The law had been in force in Catalonia since September 2020 and was a pioneer in the country for capping rental prices.
The pandemic has not made it possible to determine the exact effects of the rental market in Catalonia.
What can be observed is the drop in prices in Barcelona and throughout the community, a situation that is the same in cities such as Madrid, where rent is not regulated.
