National Assembly Approves New Lease Law to Boost Housing Access After Earthquake

The National Assembly has passed a new Lease Law aimed at revitalizing the real estate sector and improving access to housing in the wake of severe earthquakes that struck on June 24. The legislation, which received unanimous parliamentary support, seeks to establish a more robust framework for residential rental contracts and bolster housing availability during the ongoing reconstruction phase. Official figures indicate that the disaster left approximately 18,000 people homeless.

The new law stipulates that rental properties must meet adequate habitability standards. Furthermore, it explicitly forbids the rental of properties located in areas officially designated as high-risk. Rental prices, or canon of rent, will be determined by mutual agreement between landlords and tenants, provided these agreements comply with existing legislation. The payment methods can also be consensually established by both parties.

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It represents a step towards regaining confidence in the rental real estate market.

According to the law's first article, its primary objectives are to "contribute to meeting the housing needs of the population" and to "promote and protect the real estate market." During parliamentary debates, opposition deputy Alejandra Rodríguez highlighted that the legislation intends to correct current distortions within the residential rental market. She stated, "It represents a step towards regaining confidence in the rental real estate market."

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contribute to meeting the housing needs of the population

Rodríguez pointed to practices that have become common, such as demanding up to twelve months' rent in advance, requiring guarantors, and other stringent conditions that impede access to rental housing. The approval of this law is a component of the Executive's broader strategy to support families impacted by the seismic emergency, which also includes subsidies for home purchases and seeking technical assistance from multilateral organizations for reconstruction projects.

In line with these efforts, the government has begun constructing 1,875 homes for those displaced by the earthquakes. The acting president has also pledged to deliver an additional 4,000 housing units by the end of the year. Recent official reports from July 24 detail that the earthquakes, measuring 7.2 and 7.5 magnitude, resulted in over 5,500 fatalities, the collapse of 856 buildings, and damage to 190 other structures.

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promote and protect the real estate market