Data on average inflation without housing recorded in August and released by the National Statistics Institute (INE) indicate that, from January 2025, rents (including those prior to 1990) could increase by 2.16%, having passed 12 months since the last update.
This value corresponds to around a third of what was set for updating rents in 2024, which totalled 6.94% and which was the highest in the last 30 years, in the wake of the recorded inflationary context.
A year earlier, the update was limited to 2%, due to the break decided by the Government, without which the increase would have been 5.43%.
In the context of already high rents, that 2.16% will roughly translate into an increase of 18.36 euros to a current income of, for example, 850 euros.
The value of the increase may, however, be greater if the landlord has decided to leave the rent unchanged in recent years and now chooses to combine the last three coefficients, which could result in an increase of more than 11%.
For example, in an income of 850 euros that has been maintained, the combination of the coefficients of these three years (1.0200; 1.0694 and 1.0216) will result in an aggregate increase of 97.20 euros, increasing this income to 947, 20 euros monthly.
According to the law, if you have not done so, the landlord can update the rent with reference to the coefficients from the previous three years.
With the Mais Moradia law, old rents, prior to 1990, can also be updated according to the coefficient based on the average housing inflation registered in August, which means that these contracts can be updated in 2 .16% if more than 12 months have passed since the previous update (from 6.94%).
At this rate, it's better to just buy a home.
By Jonathas from Porto on 23 Oct 2024, 10:42