Homes that review contracts may increase the monthly price by up to 2.22%
He Reference Index for Leases (IRAV)which is used as a limit to limit increases that occur with the annual review of the newest rental contracts, has registered its highest value in the month of September since the start of this year 2025.
He National Institute of Statistics (INE) updated the index this Wednesday to place it at 2.22%, which means that the landlords of those homes in which the September figure is taken as a reference They will not be able to increase the monthly payment by a higher percentage. So, A rent of 1,000 euros could increase in price up to a maximum of 22.2 euros per month, that is: 266.4 euros more per year.
In this way, The IRAV now adds its fourth consecutive monthly increase after hitting bottom in the month of March (1.98%). This upward trend, however, is not worrying because it is a reference that has proven quite stable. The index has generally remained around 2% since its launch. Its highest value was reached in December 2024, when the limit for rent review reached 2.28%.
The Ministry of Housing launched the IRAV at the end of last year with the objective of avoid “disproportionate increases” in updating rental contracts. This tool was created by mandate of the housing law to counteract the escalation of prices and is calculated, among other parameters, from the CPI and underlying CPI data – it excludes the prices of energy and unprocessed food due to their high volatility -, together with corrective measures, to guarantee that the annual increase in rental income does not exceed inflation.
The annual variation rate of the Consumer Price Index (CPI) is currently at 3%, more than half a point above the IRAV. The INE has released the final data for September this Wednesday, revising it one tenth upward with respect to the advance inflation figure.
The figure equals the previous maximum reached in February 2025 and reaches unprecedented levels since June of last year, when inflation stood at 3.4%. consumer prices They have been accelerating, although moderately, in the second half of the year. From the annual low of 2% recorded in May, the CPI has been gradually rising to 3% in September. The main factor motivating these increases, highlights the Ministry of Economy, are lfuels and, to a lesser extent, the price of electricity.
For leases starting May 26, 2023
He Reference Index for Leases applies to the annual review of contracts signed as of May 26, 2023 and replaces the fixed limits of 2% and 3% set by the Government between 2022 and 2024 to protect tenants and avoid a disproportionate increase in rents as a result of the escalation of inflation as a result of the energy crisis triggered by the war in Ukraine.
The increase in IRAV must always be communicated in writing to the tenantsince there is also the possibility of extending the rent without any changes. In older rentals, where this index is not used, the reference can be either the CPI or the Competitiveness Guarantee Index (IGC), as stated in the contract.
