The index capping rent rises hits a record: a 2.54% already applying to new contracts

The statistics office publishes a monthly reference index for rent updates, calculated as the lowest value among CPI, core inflation and an adjusted rate with a moderating coefficient. It is the legal cap on the annual rise for housing contracts signed after the Housing Act.

In practice it works like this: if your contract was signed after May 25, 2023 and the annual review comes due, the landlord can raise your rent by at most that month's index, not the full CPI nor the 5% the market is posting.

While the legal cap moves at 2.5%, the real market tightens: rents rise 5.6% year-on-year, permanent supply falls 10% and seasonal lets already make up a third of the market. In declared stressed areas, supply drops reach 50% in cities like San Sebastián.

The result is a two-speed market: existing contracts protected by the index rise moderately, while new contracts absorb the market's full price increase. The pressure led unions to call a general strike on November 11 with housing at its core.

First confirm your contract date: if it predates May 25, 2023, the index does not protect you and the agreed clause applies, usually CPI. If it is later, demand the applied reference in writing: any rise above the index is improper.

If you are offered a renewal above the cap in a stressed area, you have room to negotiate: the law adds extra limits for large landlords in those areas, and tight supply favours the tenant who pays on time.