IBF researchers' report on Spanish rental regulations made a big impact

The analysis of available statistics leads the authors to conclude that Spanish landlords are a small minority of the adult population (6%) and households (9%). The report also confirms that the Spanish private rental sector is dominated by landlords with two or more rental properties, contradicting the general stereotype of landlords with only one rental property and a very low income. Instead, the report shows that landlords have double the income of their tenants.

– This means that a minority of the population are landlords who control the rental market and make an extremely large amount of money from this. It's a big problem, says Miguel Martinez.

Based on available data, the researchers calculated that most landlords would still be among the wealthiest in the country if rent controls were introduced. Today, over half of total rental income goes to the top 25% of landlords, who charge the highest rents. Rent regulation would therefore primarily reduce the profits of this particular group of landlords, in turn concentrated in the metropolitan regions of Madrid and Barcelona.

– In general, all tenants would benefit significantly if rent regulations were introduced given their direct redistributive effect. The new housing legislation has eventually supported rent regulations in the Spanish private rental sector, but it is up to regional authorities to further regulate and implement them, says Miguel Martínez.