The Housing Lease Reference Index (IRAV) has begun to play a key role in the regulation of rental contracts in Spain since its implementation on January 2, 2025. This new index replaces the traditional Consumer Price Index (IPC) as the reference for annual rent updates, and is in effect for contracts signed from May 2023 onwards.
The IRAV, calculated from data obtained up to November 2024, has a value of 2.2% for January 2025. The creation of this index is the result of Law 12/2023, known as the Housing Law, and was developed by the National Statistics Institute (INE) to provide greater transparency and legal security for both tenants and landlords.
Under the regulations, landlords must notify tenants of any rent updates with a minimum of one month’s notice and in writing, including the most recent index published by the INE. One of the highlighted features of the IRAV is that it does not differentiate between private landlords and large property owners, nor between properties located in tense or non-tense areas, demonstrating its universal application.
The Secretary of State for Housing and Urban Agenda has emphasized that the main objective of the IRAV is to balance the rental market, protecting tenants from disproportionate increases and providing clarity to landlords. However, it is important to note that the IRAV only applies to renewals of existing contracts, and does not affect the initial rent price of new contracts.
In light of these changes, it is crucial for both landlords and tenants to fully understand the legal implications of the IRAV and its impact on rental contracts. Therefore, it is recommended to seek the advice of specialized law firms, such as Català Reinón, who can assist parties in navigating this new regulatory framework. The values of the IRAV will be updated and published monthly by the INE through its official website, allowing both tenants and landlords to be informed about variations and make informed decisions.
Source: MiMub in Spanish
