Andorra PM Assures Rental Reforms Target Only Old, Low-Rent Contracts

Andorra's head of government, Xavier Espot, addressed public anxiety over the upcoming rental law reforms in a social media video on Wednesday, insisting the changes target only a narrow set of older or low-rent contracts while preserving broad tenant safeguards.

The measures, effective from 1 January 2027, permit termination solely for agreements signed in 2012 or earlier, or those with rents under €6 per square metre. All remaining contracts will renew automatically under law, Espot stated, adding that any notices to end unaffected leases carry no legal weight. Landlords seeking to terminate eligible contracts must issue at least six months' advance warning to allow tenants time to relocate. Renewals—whether with existing or new occupants—will limit annual rent rises to 1-6%, plus inflation based on the IPC index.

Espot described the reforms as a measured shift toward market normality after prolonged mandatory extensions, rejecting notions of blanket liberalisation or tenant vulnerability. He predicted most owners would keep current renters due to these protections, amid recent debates over the law's reach that he called partly inaccurate. The 2027 rules, he clarified, stop short of fully deregulating the market or unleashing unchecked hikes in fresh agreements, prioritising legal clarity and stability.

In related comments, Marta Alberch, director of the National Housing Institute, highlighted a current regulatory gap in room rentals, where many tenants lack individual contracts—especially when owners lease rooms directly within a property. Speaking on RTVA's *Avui serà un bon dia*, she welcomed future oversight to ensure fairness for both sides, noting the practice is legal but unregulated, leading to uneven protections.

Alberch urged caution amid reports of termination notices, advising affected tenants to await the new law before signing anything new, seek institute guidance, and review cases individually. She stressed that contracts should specify housing use, pricing, duration, and shared spaces.