Law 12/2023 of 24 May: The main new features of this Law on the Right to Housing

Law 12/2023, of 24 May, according to article 1 of Law 12/2023 regulates, within the scope of the State's competences, the basic conditions that guarantee equality in the exercise of rights and in the fulfilment of constitutional duties related to housing and, in particular, the right to access decent and adequate housing. It also addresses the regulation of the basic content of the right to property of housing in relation to its social function, assigning to the public authorities the role of ensuring its proper fulfilment.

Therefore, it is a state law applicable throughout the Spanish territory, in all the Autonomous Communities. As a consequence, we will analyse the most important issues introduced by this Law 12/2023, of 24 May.

1. The situation of people in situations of special vulnerability in relation to housing is defined. Thus, article 14 of Law 12/2023 states: “Housing policies will especially take into account people, families and household units living in highly vulnerable and segregated settlements and neighbourhoods, whether in urban environments or rural areas, homeless people, people with disabilities, minors at risk of poverty or social exclusion, minors under guardianship who cease to be so, and any other vulnerable persons defined at the time of action.”
2. Public authorities are allowed to promote the existence of incentivised affordable housing. Article 17 establishes the operating rules for this type of housing, which may be newly built or existing housing.
3. The declaration of areas of pressured residential market is permitted, in article 18 of Law 12/2023. Furthermore, this article also regulates the rules of these areas and some aspects related to urban planning.
4. Article 19 of Law 12/2023, on the right to housing, regulates the collaboration and provision of information by large holders in pressured residential market areas, who must provide information in pressured residential market areas. These large holders will be defined by the Administration in the declaration of pressured residential market area. Furthermore, after providing this information, the Administrations may establish collaboration formulas with the owners in order to promote the increase of affordable rental supply in the area.
5. Chapters II and III of Law 12/2023 regulate, respectively, the collaboration and cooperation between Public Administrations in housing matters and the action of the State in housing matters.
6. Title III of Law 12/2023 regulates in articles 27 and following the public housing stock, establishing its criteria and purposes.

1. We will now look at the new provisions introduced in the civil procedure law by law 12/2023 on the right to housing, in relation to evictions of occupants and large holders. Law 12/2023 modifies the LEC, mainly to protect people in situations of economic vulnerability when the eviction is initiated by a large holder. We can discuss some of the most important points:
2. It stands out that, to initiate evictions, large holders must provide more information than when the eviction is initiated by someone who is not a large holder. This is regulated in article 439 LEC, following the reform by law 12/2023.
3. Rules are established for the Courts to determine situations of vulnerability. The new article 441.7 of the LEC states that, although vulnerability situations will be determined individually, the following may be considered: “the court, to assess the situation of economic vulnerability, may consider the fact that the amount of the rent, if it is an eviction trial for non-payment, plus the supplies of electricity, gas, water and telecommunications, amounts to more than 30 percent of the family unit’s income and that the total of such income does not reach:
   1. As a general rule, the limit of 3 times the monthly Public Indicator of Multiple Effect Income (hereinafter IPREM).
   2. This limit will increase by 0.3 times the IPREM for each dependent child in the family unit. The applicable increase per dependent child will be 0.35 times the IPREM for each child in the case of a single-parent family unit or in the case of each child with a disability equal to or greater than 33 percent.
   3. This limit will increase by 0.2 times the IPREM for each person over 65 years old who is a member of the family unit or persons in a situation of dependency in their care.
   4. In the event that any of the members of the family unit has a declared disability equal to or greater than 33 percent, a situation of dependency or illness that permanently incapacitates them from performing work activity, the limit provided in letter a) will be 5 times the IPREM, without prejudice to the accumulated increases per dependent child. For these same purposes, the court, to assess social vulnerability, may consider the fact that, among those occupying the dwelling, there are dependent persons.”

4. The new article 441 bis stands out following the reform by Law 12/2023: “1 bis. When it comes to a claim for recovery of possession of a dwelling or part of it processed according to the provisions of article 250.1.4., notification will be made to whoever is inhabiting it. It may also be made to unknown occupants of the dwelling. For the purpose of identifying the recipient and other occupants, the person carrying out the communication act may be accompanied by law enforcement officers.

   If the claimant has requested the immediate delivery of possession of the dwelling, the decree admitting the claim will require its occupants to provide, within five days from the notification of the claim, a title justifying their possession status.

   If sufficient justification is not provided, the court will order by ruling the eviction of the occupants and the immediate delivery of possession of the dwelling to the claimant, provided that the title attached to the claim is sufficient to prove their right to possess and without prejudice to the provisions of paragraphs 5, 6 and 7 of this same article if it has been possible to identify the recipient of the notification or other occupants of the dwelling.

   No appeal may be made against the ruling deciding on the incident and it will be carried out against any of the occupants found at that moment in the dwelling.”

1. The extension of leases in the LAU is modified. The new article 10 of the LAU highlights that the tenant of a main residence is allowed to request an extraordinary extension of one year which must be accepted by the large landlord if the applicant is in a situation of vulnerability.
   It is also determined that if the leased property is in a tense residential market area, it will be extended in annual terms, for a maximum of 3 years, which must be accepted by the landlord unless otherwise agreed in the rental contract or a new rent has been agreed with the rent limitations of the new paragraphs 6 and 7 of article 17 of the LAU.
2. Regarding the rent update, the new article 46 of Royal Decree-law 6/2022, of 29 March, which adopts urgent measures within the framework of the National Plan to respond to the economic and social consequences of the war in Ukraine, following Law 12/2023, establishes:
3. “The tenant of a housing rental contract subject to Law 29/1994, of 24 November, on Urban Leases, whose rent must be updated because the corresponding annual term of validity falls within the period between 1 January 2024 and 31 December 2024, may negotiate with the landlord the increase to be applied in that annual rent update, subject to the following conditions:
   1. In the case that the landlord is a large holder under the terms established in article 3.k) of Law 12/2023, of 24 May, on the right to housing, the rent increase will be that resulting from the new agreement between the parties, provided that the annual variation of the rent does not exceed three percent. In the absence of this new agreement between the parties, the rent increase will be subject to this same limitation.
   2. In the case that the landlord is not a large holder, the rent increase will be that resulting from the new agreement between the parties. In the absence of this new agreement between the parties, the rent increase to be applied may not exceed three percent.”
4. Article 17.3 of the LAU is modified to establish, as a general rule, the payment of rent by electronic means.