The fresh legal changes at European Union level have sparked a large deal of agitation among property owners and tenants. The fresh law, which will come into force in the coming months, aims to importantly change the real property marketplace in Europe, limiting the anticipation of renting and selling apartments. Do we truly have an end to housing? Here's what's worth knowing about the fresh law.
Legal basis: What does the fresh Act foresee?
New European Union law, known as EU Directive 2024/15, aims to strengthen the regulation of the real property marketplace across Europe. Its main nonsubjective is:
- Environmental protection – The Act introduces strict standards on the energy efficiency of buildings. Sites that do not meet certain standards cannot be rented or sold.
- Combating the Housing Crisis – The Act aims to prevent speculation in the real property marketplace and to prevent excessive increases in rental and sales prices.
- Protection of tenants – The fresh rules introduce additional safeguards for tenants, e.g. preventing the lease of very low standard apartments.
When will it come to life?
EU Directive 2024/15 has already been adopted by the European Parliament and is expected to enter into force January 1, 2025. From now on, EU associate States will be required to implement fresh government in their national legislation.
ApartmentWhat does this mean for Real property Owners?
For property owners, the fresh rules mean that they request to adapt their buildings to stricter energy standards. In the absence of modernisation, these properties will not be legally rented or sold. Moreover, the Act besides provides for advanced financial penalties for non-compliance with fresh regulations.
Owners must expect:
- Modernisation of buildings to meet energy standards.
- Obtaining an energy efficiency certificate for all property.
- Compliance with fresh rules concerning the protection of tenants.
What are the consequences for the Real property Market?
The fresh regulations can importantly affect the availability of apartments for rent and their prices. Experts shall supply that:
- Rental prices may increase due to the costs associated with the modernisation of buildings.
- Less available housing, which could aggravate the housing crisis in any regions.
- Increased force on the real property marketwhich can lead to higher prices.
Some analysts fear that the introduction of fresh government can lead to further segmentation of the market, where only the wealthiest can afford to buy or rent new-standard housing.
Summary: Is it truly the end of the lease?
Although the fresh EU law introduces strict regulations, this does not mean the full end of housing. However, property owners must be prepared for crucial changes that may affect their income and the way in which the property is managed. It is worth investing in the modernisation of buildings to avoid future problems with fresh regulations.
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End of Housing in Europe? fresh EU law prohibits real property rental and sale
