The renewal of rental contracts widens the rent gap between landlords and tenants in the Islands

PalmThe Renewal of rental agreements at market prices will skyrocket in the Balearic Islands The income gap favoring landlords over tenants will widen. The Balearic Islands will be the autonomous community where the income difference between landlords and tenants will increase the most: an average of 5,667 euros, which will mean that landlords' income will rise to 66,385 euros, according to a report by the Ministry of Social Rights, Consumer Affairs and Agenda 2030 released by Europa Press. Along with the Balearic Islands, but at a considerable distance, Ceuta leads the increases, with an average rise of 3,495 euros in the income gap; followed by the Valencian Community, with 3,009 euros; the Canary Islands, with 2,653 euros more; Cantabria, with another 2,610 euros; and the Community of Madrid, with another 2,406 euros. Overall, if contracts expiring in 2026 and 2027 are renewed at market prices, the income gap between landlords and tenants affected by the renewal would increase by an average of €2,216 across Spain, raising the average rent for those landlords to €546. The data in the Consum report was compiled from contracts signed in 2021 and 2022 that would expire five years later, in addition to the increase in rental prices during this period according to Idealista. The report excludes data from the Basque Country and Navarre, as they are autonomous communities with special tax regimes, as well as data from Catalonia, in order to include areas of high demand that encompass 80% of the population.

In eight communities, landlords' rent is already double that of tenants.

According to the document, in eight autonomous communities the average income of landlords is now double that of tenants, with the Valencian Community leading the way, where the average landlord income is 124% higher: €52,279 compared to €23,383 for tenants. Following in the ranking are Extremadura, where landlord income is 117% higher than tenant income; Murcia (+114%); Castilla-La Mancha (+103%); Galicia (+99%); the Canary Islands (+97%); Cantabria (+97%); and Asturias (+97%). Nationwide, landlord income is 82% higher than that of tenants. Specifically, the income gap between landlords and tenants is €23,638, with landlords having an average income of €52,449 compared to €28,810 for tenants. According to Consum, the data demonstrates the need for "urgent" intervention in the housing and rental market to guarantee tenants' right to housing, "and not an optional measure that some landlords can choose to adopt and others can't."

In this regard, the Minister of Social Rights, Consumer Affairs and Agenda 2030, Pablo Bustinduy, yesterday defended Sumar's proposal to extend rental contracts that expire in 2026 and 2027, a measure that would affect 1.6 million people this year and almost 3 million until 2027.