The cost of renting a home has increased by over 50% in five years

A man puts a To Rent sign on display in a Costa apartment.
A man puts a To Rent sign on display in a Costa apartment. / SUR
  • One of the biggest sectors of the population renting property is formed by foreign residents; 59% of households in Spain from other EU countries don't own their home

The Spanish central bank, Banco de España, has warned that rental prices in Spain are spiralling higher, with a 50% increase between the last quarter of 2013 and May this year, a period of five years and five months. This compares with a much lower rise in the average price of homes for sale of 6.8%.

A report puts the rental price rise down to "economic and demographic" factors and has criticised the lack of a standard index to measure rental price increases that strips out odd types of property that cloud the figures.

The central bank said that the percentage of rental properties of the total number of homes in Spain rose from 19.4 per cent in 2005 to 23.9% in 2018.

The main groups of residents who rent in Spain are foreigners and young people.

In 2018, 59% of homes where the main householder was from another EU country were renting, and 77% from non- EU countries.

In terms of young people, the ratio of households renting where the main person was aged 30-44 years was 30 per cent of the total for that age, up from 19 per cent in 2018.

The Banco de España suggests that changes in tax breaks have stimulated the rental market, both in terms of properties being bought to rent and people preferring to rent.

The proportion of homes being rented in Spain (23.9%) is still lower than other countries, such as Germany, (48,6%), France, (35,6%) or the UK, (35%).