The Spanish Constitutional Court has annulled the limitation of housing rental prices of the Catalan Housing Law (Law 11/2020) for considering it unconstitutional, since this law invaded state powers in the field of Civil Law for the regulation of the contractual basis.

In this sense, the sentence that was released on March 10 concludes that these precepts go against the provisions of article 149 of the Constitution, also establishing that the contracts signed under these precepts will continue in force, and this decision will affect new contracts.

Law 11/2020 required the freezing or reduction of rental prices in areas considered «stressed», that is, towns with more than 20,000 inhabitants with incomes below €2,000 per month and that affected more than 60 Catalan towns.

The sentence does not go into details of how the definitions of stressed areas are stipulated, nor how to calculate income, among others. The magistrates only focus on competence issues of the Autonomous Communities.


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