The National Institute of Statistics (INE) has published this Thursday, January 2, 2025 the November Leasing Reference Index, which stands at 2.20%. This indicator, published monthly, will be used to update rental income in 2025, and its definition was published on December 20.
As established in the BOE in the Resolution of December 18, 2024, this index would be set by the INE for “avoid disproportionate increases in the rent of lease contracts.” In this way, the contracts that were signed after the entry into force of the Housing Law in May 2023 will review the annuities according to this percentage.
Today the @es_INE has published the annual variation corresponding to the month of November 2024 of:
🔸Reference Index of Housing Leases
Results ➡️ https://t.co/HAsBYEZcTy#INE pic.twitter.com/57aEADBK1m— INE Spain (@es_INE) January 2, 2025
Every month the INE will update the index, so that it will mark the maximum limit that can be applied to the increase in the rent of housing rental contracts. It must be taken into account that this It will only affect, as has been said, contracts signed since May 2023, and provided that the contract includes revaluations in the rental price.
How the INE defines the rental reference index
According to the INE itself, the ÍReference Index for the Update of Housing Leases (known by the acronym, IRAV)is defined as “the minimum value between the annual variation rate of the Consumer Price Index, the annual variation rate of the underlying Consumer Price Index and the adjusted average annual variation rates of the CPI and the underlying CPI, measured as the difference between the annual growth rates of both the Consumer Price Index and the underlying Consumer Price Index of each month and a reference parameter that represents the expected inflation in the medium term, adjusted with a moderating coefficient.
How the income of contracts signed before May 2023 is updated
Although this index aims to regulate that rental price increases are not excessive, there are many contracts that do not fall within this regulation, specifically all those that were signed prior to May 25, 2023.
These, as long as it is included in the rental contract, The rental amount will have to continue updating in accordance with the CPI, the IGP (Competitiveness Guarantee Index) or whatever the parties have established, as explained by the Ministry of Housing itself on its website. In it they also remember that despite the contract agreement, the increase can never exceed the variation in the CPI.