Andorra Housing Union Slams Rental Deregulation as 'Expulsion Law' Threatening 49% of Population

The Sindicat d'Habitatge d'Andorra has escalated its opposition to the government's plan to deregulate the rental market from 2027 to 2030, calling it a "programmed expulsion law" that could displace up to 43,800 people—49% of the population—through mass evictions and rent increases, such as a projected 47% rise for a typical 70m² apartment by 2032. In a detailed document sent to the executive, head of government and parliamentary groups, the union proposes alternatives including indefinite contracts as standard, rent controls based on property value, living standards and local purchasing power, bans on evictions without alternative housing, a public property registry, an updated housing census, mandatory mediation, penalties for fraud like the "family member trick" and regulation of room rentals and overcrowding. It accuses the government of empty dialogue favouring landlords and warns of sustained protests "parish by parish, neighbourhood by neighbourhood" if the bill advances, holding the executive responsible for any social conflict. The union references prior actions, including the April 5 demonstration, and notes around 20,000 of 25,000 existing contracts could be affected.

Government spokesperson Guillem Casal responded that the legislation, now in parliamentary proceedings, strikes a balance neither fully favouring landlords nor tenants and cannot be changed by the executive. He reiterated that discussions with stakeholders, including the union, shaped the proposal.

Updated data on the first-time homebuyer loan guarantee scheme, launched in May, shows 25 applications processed: 14 approved (covering 45 household members with €1 million in state-backed interest over seven years, averaging €50,000 per case), nine pending and two withdrawn. Beneficiaries are mainly young couples with children and incomes near the €50,000 average—eight below, six above—with eligibility barring those holding properties or with over 30% savings. Properties average €415,000, up to a €600,000 cap.

The Partit Socialdemòcrata (PS) deems the programme poorly targeted and "inflationary," mainly aiding middle-to-upper income earners able to buy at market rates without easing price pressures or reaching low earners—only two approved cases under €40,000 annually. PS executive member Joao de Melo labelled it a "dangerous trap," warning that after seven years, rising Euribor or job loss could leave recipients unable to sell or repay advanced interest. Amid thousands in housing shortage and low uptake, he called it ineffective. PS plans a 30% direct purchase subsidy amendment to the rental law.

Casal rejected PS criticism, stressing the scheme targets middle-income youth lacking down payments, reduces rental pressure and is no failure, having mobilised €1 million in five months.

Public housing efforts continue amid the crisis, with the government aiming for 500 affordable units by legislature's end. Recent examples include the former Pellicer hotel in Canillo (23 flats, mostly occupied by elderly after initial low interest and 30 renunciations; rents €400-€800 based on income) and the ex-Artic hotel in Andorra la Vella (younger residents). The Ribasol complex added nearly 70 units, with 24 recently allocated; others operate in Sant Julià de Lòria (four), Encamp (20) and elsewhere. Residents cite rising private rents and evictions as drivers, though challenges like small sizes and neighbour transience persist.

PS councillor Laia Moliné has requested full details on the delayed Caubella heliport project, awarded in 2023, covering progress, timelines, costs, overruns, operations and risks.