Andorra Postpones Rental Price Freeze End Bill to 2026 Amid Backlash

The Andorran government has postponed presenting its bill to end the rental price freeze until at least the first quarter of 2026, opting for broader consultations with tenants, landlords, unions, business groups, civil society, and opposition parties.

Government spokesperson Guillem Casal outlined the revised timeline during a Tuesday press conference after the Council of Ministers meeting. The executive shifted plans after reviewing available data, seeking a "closed, executable, and acceptable" proposal that balances interests without disrupting the public. Consultations will begin after the Christmas holidays, with no firm date set. "We have a year's margin until the freeze ends on 1 January 2027, and rushing is never good advice," Casal said, noting the challenge of transitioning from repeated extensions to a new framework.

The draft, previously shared only with majority parliamentary groups, proposes phased increases. Contracts signed before or during 2012 would fully lift extensions in 2027. Newer contracts could extend up to five years, with caps of 25% for rents below €8 per square metre—phased gradually over five years—and 20% to 5% for higher rates. Renewals would track only IPC inflation. Exemptions cover properties over 150 square metres or monthly rents above €2,500.

A leaked version last week sparked backlash. Opposition parties including Concòrdia, PS, and Andorra Endavant criticised the lack of access and dialogue, viewing it as a trial balloon amid perceptions of haste on housing. The landlords' association APBI highlighted supply shortages amid population growth and misaligned foreign investment, opposing measures that burden owners. USdA union called the plan incoherent, warning that 25% hikes outpace private-sector wage growth and minimum wage increases of at most 6%, eroding purchasing power in a structural housing crisis.

The reaction led Head of Government Xavier Espot and Housing Minister Conxita Marsol to act. Marsol urgently called an Economic and Social Council (CES) meeting, where the bill was removed from the agenda. Stakeholders instead received the draft for review, with data pledged by January and a one-month input period to shape a more consensual version—potentially delaying presentation to February.

Casal minimised the dispute, pointing to alignment with government allies and plans to include opposition input. He acknowledged internal majority debates and parliamentary amendment risks, aiming for stability. CEA president Gerard Cadena requested more impact data, while USdA treasurer Joan Torra accused the government of gauging reactions via the leak and doubted unions' influence. Opposition and unions expressed scepticism over transparency, with some majority figures like Ciutadans Compromesos MP Carles Naudi hinting at needed adjustments for balance between owners and housing rights. Casal stressed avoiding a bill vulnerable to major changes, reiterating time remains ample before 2027.