Spain's government has once again approved the Housing Law: a 2% cap on rent increases and mandatory lease renewals, sparking market concerns.
The Spanish government approved two emergency housing decrees on September 29, aimed at limiting rent increases and mandating lease renewals. Although Congress rejected these decrees on October 2, the Spanish Council of Ministers re-approved them on Tuesday and submitted them to the Congress's Standing Committee. The decrees cap rent increases at 2% (while September inflation was 4.9%) and mandate lease renewals for five or seven years, which is seen as rewriting already signed rental contracts. The market reacted swiftly, with Spanish television reporting that approximately 2,900 rental listings were withdrawn within hours, and Madrid listings decreased by about 20% within 24 hours. Critics argue that these decrees may be unconstitutional due to their retroactive modification of private agreements. The article points out that in a context where government policies could reshape asset rules, Bitcoin's role as a store of value, unaffected by such interventions, is highlighted.
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