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The rise in the price of housing for rent triggers evictions

The default release of rent already involves six out of 10, while mortgage-related declines

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The rise in the price of housing for rent triggers evictions

Teresa Sarmiento is 68 years old. Chilean arrival in Spain in 1988 and nationalized two years later, lives in a flat in district of Footbath for 19 years. On June 1, if no one remedis you, you should leave your home or risk being evicted. In January, company that now owns its building expressed to burofax its "willingness not to proceed with renovation" of lease, which expires that day. According to account, until January paid 310 euros per month for his house, a figure that was updated year by year with IPC. The document also informed him that income was 335.18. Then he stopped paying rent. In March he got anor burofax in which he apremiaban to pay two months rent and reiterated date of departure. There have been no calls or any or type of communication with property, nor have y given you option to sign a contract for anor amount. You have not received any legal notice for time being.

"I've looked everywhere, but prices are outrageously high and y ask for collateral and bails...", he says, on or side of phone. With 68 years and a non-contributory pension of 369.9 euros that supplements with small sporadic work of care to elderly, to what was dedicated in his working life, Teresa can not pay 19.3 euros of square meter that costs rent in district center of Madri D, maximum since 2007, according to data of idealist real estate portal, which figures in 7.9% rent rise in capital last year. He says he has attended all housing assistance services he knows, without success. He explains with little conviction that he may be able to use a friend to rent toger. "I have no idea what will happen on June 1st," he says, resigned.

Increased statistics

Teresa could be evicted. In that case, statistics of launches related to Urban Leases Act of 2018 would be thickened. According to General Council of Judiciary, in 2017, a total of 60,750 launches were produced (changes in possession of a property; Not all launches are evictions, but all evictions are launches, remember from CGPJ). Of se, 35,666 derived from Urban Leases Act (LAU), for 22,330 derivatives of foreclosures. While former increased by 4.3% over previous year, latter decreased by 15.4%. In last quarter of last year, data were even more indicted: an increase of 8.2% interannual in those related to rents and a decrease of 20.1% of mortgages. In Madrid and Barcelona, lease-related launches are around 80%.

The casting to be passed by tenants

Emmy Fierro that in his search for floor, have come to demand a monthly payment in advance, anor as bail, anor for agency, and anor six deposit (collateral), plus payroll and so on. Leonine conditions that require you to collect nine months of rent in advance. "You find things like this," says Beatriz Toribio, "but it's not very widespread." It recognizes, however, that a few years here situation has changed. "Years ago I chose tenant; Now it's owner who decides. There are almost castings to choose from tenant, and some make ruses to be chosen ones ", how to offer a reservation even before first visit. Fernando Encinar believes that se conditions are not habitual. "Normal is a month of bail, anor for agency and a default insurance," he summarizes.

"It is clear that se figures are related to increase in rent prices," says Curto José Inwit, spokesperson for Madrid tenants ' union. "It is result of latest modification of LAU [EN 2013], which allows owner to initiate launching process to first default", denounces. Beatriz Toribio, Director of Photocasa Studies, coincides in analysis. "Common sense tells me that re is a correlation between increase in launches and rise in price of rents," he adds.

Anor statistic of CGPJ endorses this analysis: almost nine out of ten sentences related to Urban Leasing Act for habitual housing rentals (not necessarily finalized at launch) have to do with "non-payment of rents or Amounts that are assimilated. "

Despite strong rise in prices in rental housing market, which has placed several districts in Madrid and Barcelona at levels higher than that of 2007, just before crisis, Fernando Encinar, director of study service Idealist A, refuses to talk about bubble depending on data collected by your company. "We are not facing a problem," he says, but he has increased rent market and refore increases number of defaults. "Those who feel expelled today are probably expellers a few years ago," he argues.

In analysis that makes manager of idealist, market has grown by several factors: a change of mindset that makes more and more people contemplate or alternatives to housing property, current difficulty to get a mortgage, unlike The years before crisis ("Few today can raise 30% of price of house required to start," he says). To this high "brutal demand" is added scarce offer in some areas, such as centers of Madrid or Barcelona and "teacher [in 2013] Sionalización of rent", with entry of companies or funds of investment or of venture capital looking for profitability that offers a Flourishing market.

One of se companies was made with building of street San Benito (Madrid) where he lived for 10 years Emmy Fierro, of 40 years. He paid 750 euros for his apartment of something more than 50 square meters, but a few weeks ago he was warned that contract expired. He was not given option to negotiate, but a few days later he saw announced his apartment in a real estate portal for a price of 1,050 euros per month. already found anor; Yes, for 950, 00 euros a month. "What is less than 800 euros per month in Madrid are zulos of 20 or 30 square meters or flats without reform," he explains.

Legal changes

In this sense, Inwit returns on reform that was introduced in law of rents in year 2013, which reduced from five to three years period compulsory extension of contract, and denounces that this modification "only attended to necessities and interests of great House holders, banks, to make homes profitable with a greater turnover of tenants. " "What Life Project can you do if you can be thrown out of a house at age of three?" he asks.

Therefore, Union of tenants of Madrid, toger with that of Barcelona, came this week to Congress to move to parties — except for PP and PNV, which did not receive m — a series of measures, among m that minimum duration of rental contracts is six Years, 12 in case of "big owners" (with more than six houses), that renewal of contracts is automatic unless owner or a relative needs house or that rents are updated according to a binding index. A proposal of we can with similar measures was rejected on Thursday.

For moment, refore, nothing that contains prices of rents, except market itself. According to Encinar, this is already "playing ceiling" in big Markets (Madrid, Barcelona and some or great Spanish city) and adds that "good news" that phenomenon of tourist flats, with latest renovations, especially Hacienda, which will eliminate Deductions to owners of se accommodations, will stop pressing prices upward. "We're about to stop talking about it," he says. Toribio, of Photocasa, believes that y will still go up prices of rent in general, but less, and that in some areas "has touched roof". "Prices are calming down because people can't pay more."

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