At the Council of Ministers on 26 October, the Government decided not to impose a brake on rents in 2024, which will be updated by 6.94%, having approved measures to reinforce support for tenants.

Unlike what happened in 2023, in which a limit was placed on the updating of the value of rents – which rose by 2% instead of the 5.43% that resulted from the law –, in 2024 there will be no this type of limitations, with the Government chose to reinforce support for tenants with income up to the 6th income tax bracket and effort rates with income above 35%.

As a way of mitigating the impact of updating rents, the Government approved a measure that automatically updates extraordinary income support, adding 4.94% of the value of monthly income, with this reinforcement being granted even if this implies exceeding the current maximum amount of support (which is 200 euros).

Furthermore, tenants who do not currently receive extraordinary rent support, but see their effort rate exceed 35% with the update scheduled for 2024, may, by application, request to be covered by the measure, as long as their contract has been done by March 15, 2023.

In practice, a rental contract of 700 euros will increase, in 2024, to 748.58 euros per month through updating according to inflation. In a contract worth 900 euros, the increase will be 62.46 euros.

Furthermore, the value of rent that can be deducted from the IRS will rise from the current 502 euros to 550 euros in 2024, with this measure being universally applicable, that is, aimed at all tenants with a lease contract.

According to current legislation, the 6.94% increase in rents in 2024 is applicable to both urban and rural areas.