Andorra Rental Deintervention Bill Advances with Minimal Changes Despite Opposition Fury

The bill for the progressive deintervention of Andorra's rental market is advancing toward approval in the Consell General with minimal changes, despite strong opposition criticism and near-total rejection of 43 amendments from opposition groups.

Demòcrates per Andorra (DA), holding the parliamentary majority alongside Ciutadans Compromesos (CC), voted against nearly all proposals from Concòrdia, Partit Socialdemòcrata (PS), and Andorra Endavant during Economy Commission sessions. Opposition parties described the process as unilateral, accusing the government of presenting the text as final before parliamentary debate concluded. They pointed to a summary published in print media on 15 May, signed only by DA, alongside a video from Head of Government Xavier Espot and statements after the Housing Syndicate (SHA) protest on 16 May, where he called the bill "protective, guarantee-based, balanced, and measured" and indicated limited room for further changes.

Concòrdia labelled the approach a "lack of real willingness to reach agreements," stressing housing as Andorra's top citizen concern. PS decried "absolute lack of dialogue and negotiation," noting systematic rejection of their input despite calls for proposals. Andorra Endavant condemned it as a "serious institutional disrespect" to the Consell General, arguing it undermines parliamentary work. All three groups announced they will vote against the bill in plenary.

Two amendments remain pending ahead of the next Economy Commission meeting next Thursday: PS's on the "child trap" mechanism and Andorra Endavant's to bar non-residents from commercial use of residential rentals. Sources indicate only minor technical tweaks have been accepted so far.

The legislation ends the mandatory extensions in place since 2019, gradually unfreezing around 20,000 contracts between 2027 and 2030 through annual increases of 1% to 6% based on price per square metre, plus IPC (with examples assuming 2.5% inflation). Post-transition, owners can renew or change tenants with six months' notice.

Espot defended the bill as seeking "equilibrium" between owners and tenants, fulfilling DA's electoral programme for gradual deintervention without returning to blanket extensions. He acknowledged 2022 contracts expiring in 2027 as the "most unprotected" group, outside current safeguards, and said the government is developing accompanying measures—possibly via regulations or executive actions—to aid tenants facing sharp rent hikes if not renewed.

Stakeholders voiced concerns. The Association of Property Owners (APBI) argued the bill shifts state social duties onto private owners, echoing IMF advice against direct market controls in favour of targeted aid to vulnerable groups during a gradual transition. The SHA, after meeting DA and CC, warned the text perpetuates market speculation over housing rights, highlighting insecurity for post-2021 contracts with already high rents, potential abusive hikes, and "silent evictions." They demanded real guarantees, a reference price index, indefinite contracts as standard, stricter fraud checks, and written commitments for future LAFU reforms.

Opposition leader Cerni Escalé of Concòrdia criticised the "double discourse" on consensus, noting over 300 rejected housing amendments this term amid lost affordable units. The SHA signalled ongoing pressure, stating the 16 May mobilisation was "a warning, not an end." Despite tensions, DA's majority ensures passage with few alterations.