Mallorca rent cap plan could kick in automatically
Rent rises on Mallorca could be blocked in areas that meet a legal test for a strained housing market. On 9 November, Ara Més-Front Ampli called for rent caps to take effect automatically in qualifying parts of the Balearic Islands. Its candidate for Spain’s Congress, Carme Gomila, says the plan is an urgent response for the 270,000 people who rent their homes across the islands.
What the rent cap would do
Under the proposal, small landlords could not raise rents once an area’s strained housing market had been established. Large property owners would have to bring rents into line with the reference rates set by Spain’s housing law. That law already allows rent limits in areas where housing costs pass certain thresholds. The coalition wants those limits to apply without a further political decision.
The coalition’s figures show why it is pressing for action: families in the Balearic Islands spend an average of 45% of their income on rent and basic utilities, it says. Rents have risen 70% in five years, compared with a 23% rise in the consumer price index.
What else the coalition wants
Ara Més-Front Ampli says a rent cap alone would not solve the housing problem. It also wants to restrict home purchases by non-residents, expropriate homes held by speculative investment funds for social use, and introduce a tax on property speculation. These are proposals, not measures that have been approved.
Source: Europa Press / Mallorca.com