Andorra Launches Ambitious Rent Aid for Households Overburdened by Rent

The Andorran government has announced an "extensive and ambitious" rent assistance programme for households spending more than 30% of their net income on primary residence rent, directly responding to a proposal from the Democratic Parliamentary Group.

Head of Government Xavier Espot outlined the initiative during Thursday's Political Orientation Debate session, dedicating significant time to housing issues. The programme, to be managed by the Housing department, will extend beyond tenants affected by the end of extraordinary contract extensions from 1 January 2027. It will also cover those with leases signed since 2022, which lack mandatory renewals, and others needing new agreements. Espot noted that details remain under development, with regulations still being finalised, potentially reaching more people than current social affairs aid.

The announcement follows a resolution proposed by the Democratic Group earlier in the debate, calling for the government to implement a temporary, reviewable and personalised support programme within six months. That measure would include individual monitoring based on family income, household makeup and vulnerabilities. The group described decent housing as a "fundamental pillar of social cohesion, personal well-being and equal opportunities", citing it as the public's main concern. It ties into the rental contracts law for habitual and permanent housing, approved by the General Council on 4 June for 2027-2030.

Espot also highlighted government actions returning over 1,530 flats to the residential market since taking office, including 466 via relaxed habitability rules, 45 linked to zero economic transfer fees, 62 from unfinished building measures, 363 converted tourist flats and 114 previously vacant units. He stressed enhanced oversight of fraudulent property recoveries, with 132 cases logged since 2022, 35 sanction files opened and over €190,000 in fines imposed since 2024.

In related developments, Housing Minister Conxita Marsol announced a new public tender within 15 days, allowing building owners to lease properties for around 30 years to expand the affordable rental stock. This complements a building purchase tender closed this week with six bids from across parishes, which the government is now evaluating. Marsol prioritised near-ready structures needing minimal investment for quick occupancy, noting owner interest in leasing over selling.

The Democratic Group's resolution, alongside others including from the Social Democrats on purchasing power, will be debated and voted on at the General Council session on 14 July. Espot further pledged a minimum wage increase next week to counter Middle East crisis-driven inflation, with another rise by year-end aiming for 60% of average salary.