A study by Madrid-based consultancy Atlas Real Estate Analytics reveals that the Balearics would be the province* of Spain most affected by limits on the price to rent as proposed in new Spanish housing legislation.
The law was approved by the Spanish government in February last year, but disagreements between the two parties of government - PSOE and Unidas Podemos - and other parties have delayed it being formalised.
A key point of difference has been the definition of a "stressed area", criteria for which take account of post codes, average incomes and average percentages of income spent on rents. The government now hopes to have the text of the law ready next month or March at the latest. It would include provision for regional governments to modify conditions of the law based on their own regulations.
The study has examined three scenarios. The most restrictive of these would affect 85% of post codes in the Balearics and 503,951 households - 94% of the total, which would be classified as stressed. The national averages for these are, respectively, 14% and 40%.
The least restrictive of the three scenarios would cover 20% of post codes; 40% of households (216,810) would be classified as stressed, compared to national averages of 4.2% and 19.8%.
* The Balearics is variously defined as a province or a region for this type of study.
** The number of households is hypothetical in that they are obviously not all rented out.
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