Andorra Approves Gradual End to Rental Extension Freeze Amid Political Divide

The Andorran General Council has approved a law ending the freeze on rental contract extensions, despite sharp divisions among political groups. The measure, backed solely by the governing majority's votes, sets rules for a gradual unfreezing of the housing rental market, with extensions in place since 2019 now set to lift progressively.

Housing Minister Conxita Marsol defended the law as a "progressive, balanced, and guaranteed" step toward de-intervention, not an abrupt liberalization. She highlighted prior government actions to ease the housing crisis, including expansion of the public housing stock, omnibus laws, and taxes on foreign real estate investment. Key protections in the text include time-based gradualism, limits on rents for new contracts to encourage tenants to stay and curb speculation, and a sanctions regime. Marsol stressed that non-compliance would face firm enforcement, adding that the opposition had often politicized housing for electoral gain.

Majority councillor Berna Coma echoed this, calling the extensions an "exceptional and necessary" response that could not become permanent, as it fails to address structural shortages. She insisted the law protects tenants and urged anyone receiving letters about illegal rent hikes or premature changes to contact the National Housing Institute.

Opposition parties rejected the bill for varied reasons. Social Democrats (PS) vice-president Pere Baró warned it could mark "the end of the Andorra we know," affecting 7,000 households—35% of contracts—from January 1, leaving families, youth, and workers at risk amid insufficient public housing. He criticized the rejection of PS amendments as partisan and called for de-freezing only when conditions improve.

Concòrdia leader Cerni Escalé faulted the lack of negotiation and deeper issues like unchecked foreign investment in property since 2011, proposing a moratorium on such investments and tougher taxes on speculative capital gains. Andorra Endavant's Carine Montaner argued for faster de-freezing to boost supply, advocating smaller units, coliving, modular builds, and flexible furnished rentals, while lamenting legislative delays.

Debates on PS amendments escalated into clashes, with Montaner pushing selective immigration and expulsion for recent resident families with delinquent minors, drawing rebukes from Baró for echoing far-right rhetoric harmful to social cohesion, and from Head of Government Xavier Espot for mixing unrelated issues. All six PS amendments were rejected.