Andorran Opposition Slams Rental Aid as Rent Inflation Risk

Cerni Escalé, leader of the Concordia parliamentary group, warned during Thursday's General Council session that the government's new rental assistance programme risks triggering market inflation by enabling landlords to raise rents up to the aid ceiling.

Escalé questioned how the measure—where the government covers the difference so households pay no more than 30% of income on rent—might prompt owners to increase prices. He illustrated with an example of someone earning €2,000 monthly contributing a maximum €600, leaving the state to fund €400 more. "What prevents the landlord from hiking rent by that difference?" he asked, arguing it amounts to publicly financing market increases, the easiest state option, while doubting its effectiveness. He cited international examples where similar aid fuelled rent rises and urged avoiding widespread welfare dependency, noting Concordia's rejected proposals for price controls and public housing expansion.

Escalé stressed: "We're afraid this measure, paying the difference directly to owners, will cause market inflation."

Interior Minister Conxita Marsol, overseeing Economy, Employment and Housing, rejected the criticism, insisting the programme is "well protected" by rental update limits in law, including progressions for existing contracts and price caps on new ones. She described it as a temporary initiative to preserve living standards and affordability until public housing grows, with eligibility tied to income, assets and residency. "Citizens with average purchasing power should allocate 30% of income to housing without harming their quality of life," she said.

Pere Baró, Social Democratic Party president, joined the opposition, calling the aid electoralist and favourable to unscrupulous landlords. Carine Montaner, Andorra Endavant group president, defended owners, noting they "sweated to acquire these flats" and without them, no rentals exist.

Marsol countered that Social Democrats abstained while others voted in favour, framing the programme as support for tenants alongside public stock growth. It delivers on a government commitment from last July amid ongoing housing strains.