The Government extends until January 31 the ban on evictions and the extension of rental contracts – idealista / news

The Government has extended at the last minute the duration of several measures in the matter of housing rental that it announced in the first weeks of a state of alarm and that They are aimed at the most vulnerable tenants.

As planned, the Council of Ministers has approved the automatic extension of rental contracts that expire soon, the suspension of evictions due to non-payment of rent and a postponement of the monthly payments when the owner of the home is a large holder or a public entity. The extension of these measures is included in the Royal Decree-law for the expansion of ERTE and sets next January 31 as new application deadline.

We review what the measurements consist of:

1. Extension of rental contracts. On April 1, an extraordinary six-month extension came into force in the lease contracts of the habitual residence that expire in the two months following the entry into force of the rule. And now the deadline has been extended for another six months.

In this sense, the Government details that “the housing lease contracts that can benefit from the extraordinary six-month extension are extended until the same date of January 31, 2021, under the same terms and conditions of the contract in force, provided that a different agreement has not been reached between the parties and that the owner (natural person) had not communicated the need for the home for himself, in compliance with the terms and conditions established in article 9.3 of Law 29/1994, of November 24, on Urban Leases “.

2. A suspension of the eviction procedures and the releases for those tenants in vulnerable situations who are left without a housing alternative.

As explained in the statement sent by the Ministry of Transport, Mobility and Urban Agenda (Mitma), the maximum period of this measure is extended until January 31, 2021, which “favors the possibility of action by social services taking into account that A difficult situation persists for many households that may be at risk of losing their home and, all of this, in line with the extension of other social protection measures in the economic and labor sphere “.

3. Large homeowners, forced to help renegotiate. The measure that was approved on March 31 and entered into force on April 1 included that, in the event that the owner of the rented home was a large holder or an investment fund (from 10 properties, either person physical or legal), the vulnerable tenant could benefit from a moratorium on the payment of rent for the duration of the state of alarm or if the vulnerability persisted. To return these deferred rent, the large holder could decide whether to make a 50% reduction of the debt that has been generated or a debt restructuring in the next three years.

And those terms are maintained. The official communiqué maintains that “it also extends until January 31, 2021 the Possibility of requesting a moratorium or partial remission of rent, when the lessor is a large holder or public entity, in the terms established in the aforementioned Royal Decree-Law 11/2020 “. The measure, therefore, does not affect small homeowners.

>> Check here for more information about the requirements of this moratorium

Mortgage moratoriums end

The Government has not announced changes in other measures such as the deadline for requesting mortgage moratoriums, either the official one (promoted by the Government) or the sectorial one (the private alternative to banking).

However, financial sources assure idealista / news that the sector is open to negotiating individually with clients who have problems paying the loan installment, despite the expiration of the term to request the moratorium.

Extension of the social bonus until June 2021

On the other hand, the Vice Presidency of Ecological Transition includes in this new royal social decree the extension of the vulnerable consumer with the right to access the electricity social bonus. Family units in which any of their members are unemployed, have ERTE or have had their working hours reduced due to care may have a direct reduction in electricity bill until June 2021.

The extension is also made for entrepreneurs who face similar situations and which, therefore, can lead to a substantial loss of income.

The electricity social bond already benefits 1.3 million consumers. This social bonus also extends to the term bonus. In addition, this legislation maintains the prohibition to cut the supply to vulnerable groups.

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