Andorran Union Slams Rent De-Freezing as Irresponsible Housing Crisis Driver

The Andorran Trade Union (USdA), part of the Economic and Social Council (CES), has criticised the government's rent de-freezing proposal as "irresponsible," warning that annual increases capped at 6% plus inflation will accelerate the "real and sustained expulsion" of long-term residents, workers, and pensioners.

In its Wednesday statement, the USdA argued the measure exacerbates a housing crisis forcing out people who have lived in Andorra for years amid rising unaffordable rents. It highlighted flaws in the uniform property valuations, which emphasise size and location but ignore building age, condition, or energy efficiency, allowing old flats to command prices akin to new builds and disadvantaging tenants. Broader pressures include flat private-sector wages against climbing costs, limited public aid beyond the minimum wage, pensions often falling below it, and rents beyond reach for many—particularly pensioners spending most income on housing. "With this liberalisation promoted by the government, many pensioners are directly condemned to leave Andorra," the union stated, citing an ongoing trend.

The USdA decried "neoliberal" policies for fostering "economic and social substitution," where established locals depart as the system draws high earners and non-EU workers on lower pay, eroding labour standards. It stressed newcomers bear no blame, faulting instead a model exploiting insecurity to cut costs and shift demographics. Remedies sought include income-linked rent caps, valuations accounting for age, maintenance, and efficiency, stronger protections for workers and pensioners, and policies preventing residency from becoming "a privilege reserved for newcomers with high purchasing power and precarious labour."

Government officials, including Housing Minister Imma Marsol and spokesman Guillem Casal, have defended the plan. Casal, responding to the USdA on Thursday, noted consultations with landlords—who will enforce the rules—and tenants, including a meeting between the head of government, Marsol, and the Housing Syndicate. He said the draft is undergoing final adjustments before submission as a legislative bill for party review and parliamentary debate, aiming to balance gradual market liberalisation with hike limits to prevent price surges and protect citizens "in the general interest."

In a parallel effort, the Council of Ministers this week approved seven more applications under the first-home ownership programme, launched in October, raising the total to eight favourable resolutions from 15 received. Two applications were withdrawn, and five remain under review, processed sequentially until the budget runs out. Approved properties averaged €407,375, with mean interest subsidies of €58,047.50. The initiative provides 100% mortgage guarantees for seven years, covers all interest during that time, waives down payments, and requires seven years' residency (at least one applicant per group), no prior property ownership, assets below 30% of the home value, and purchases up to €600,000. Loans split into a seven-year phase at Euribor +0% (government-funded) and a remainder at Euribor +0.50%, with terms of 20-50 years ensuring quotas stay near one-third of income and no beneficiary exceeds age 80 at maturity. Officials say it eases the renter-to-owner transition and supports permanent housing stock.