Andorran Opposition Slams Rental Aid as Rent Inflation Risk

Andorran opposition criticises government's rental aid programme as electoralist and inflationary, while minister highlights safeguards and low eviction notices

Opposition parties in Andorra's General Council, including Concordia and the Social Democrats, have condemned the government's new rental assistance scheme during Thursday's executive control session, labelling it electoralist and warning it could inflate rents.

Cerni Escalé, Concordia group president, argued the programme—covering the gap for households spending 30% to 40% of income on rent—might encourage landlords to raise prices up to the aid limit, with the state absorbing the difference. He expressed concern that it could "assistencialise" large swathes of society and questioned measures to prevent such hikes. Escalé highlighted the risk of public funds effectively subsidising rent increases.

Pere Baró, Social Democratic Party president, echoed this, calling the aid favourable to landlords who act improperly.

Interior Minister Conxita Marsol, responsible for Housing, defended the temporary measure as compliant with a parliamentary resolution. She admitted it "is probably not perfect" but insisted rent increases are restricted by the rental market de-regulation law, which caps adjustments on existing and new contracts. Responding to Social Democrat Susanna Vela on residential continuity, Marsol revealed that since July—when the six-month notice period took effect—the National Housing Institute has received only five notices from landlords to tenants: three compliant and two non-compliant, with advice given to tenants in those cases.

Marsol also stated the current public affordable housing stock meets immediate needs, with 74 applicants pending review (57 for one-bedroom units, eight for two-bedroom and nine for three-bedroom). She added that 66 flats in Ordino will become available soon.

The minister noted all 40 processed first-home purchase guarantees were handled within deadlines, except two in August that took six extra days. No cases of ITP exemption requests expiring due to delays have been reported, though procedures will be reviewed.

Baró and Escalé maintained their stance on potential market distortion and welfare dependency, while Marsol reiterated eligibility criteria based on income, assets and residency, alongside plans to expand public housing stock. The programme fulfils a government pledge from last July amid persistent housing pressures.