Rental regulations are undergoing significant transformations in several countries, driven by the need to curb rising prices and ensure greater stability for tenants. In Spain, beginning in 2025, rent updates must follow the new IRAV index, while large property owners may also face property tax surcharges on vacant homes. In the United States, Washington has imposed strict rent caps, and the REST Act is under discussion in New York. In the United Kingdom, the Renters’ Rights Bill proposes eliminating no-fault evictions and limiting rent increases to once per year.

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These changes reflect an international shift toward a more demanding and complex regulatory framework. For large property owners, this means adapting to scenarios with tighter pricing rules, greater tax and legal obligations, and closer government oversight. This guide examines the impact of these new rental regulations in the United States, the United Kingdom, and Spain, and offers strategies for adapting effectively.

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Why are rental regulations changing?

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Rental regulations are evolving in response to the global housing crisis. Rising prices and a lack of affordable supply have pushed governments to intervene to ensure fair access to housing. According to the Organization for Economic Co-operation and Development (OECD), over the past decade spending on housing, water, electricity, and fuels has remained the largest component of household budgets in most member countries.

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Added to this are inflation and higher energy costs, which increase the overall cost of living and reinforce the need to limit rents. For large property owners, this means operating under stricter legal obligations, price controls, and growing public scrutiny.

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United States

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In 2025, several states have advanced regulations that directly affect large property owners:

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• Washington: according to the Washington State Legislature, this year a law came into effect limiting rent increases to 7% plus inflation or 10%, whichever is lower, and it applies even to single-family homes. While it affects all landlords, for large property owners it represents a significant reduction in pricing flexibility.

• New York: according to the New York State Senate, the REST Act is currently under discussion in 2025. If approved, it would expand rent stabilization to include even smaller buildings, extending rent controls to more portfolios.

• California: in July 2024, AB 12 came into effect, limiting security deposits to a maximum of one month’s rent. While not new this year, it reflects the ongoing evolution of the rental market and the complexity of state-level laws.

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Consequences for large property owners

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• Reduced ability to adjust pricing due to rent caps.

• More portfolios under scrutiny with measures like the REST Act.

• Fewer financial safeguards because of limits on deposits.

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Practical tips to adapt

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• Review contracts and deposits to ensure compliance with state rental regulations.

• Plan income projections using rent stabilization scenarios.

• Diversify investments into less restrictive markets.

• Rely on local legal counsel to ensure compliance.

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United Kingdom

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In 2025, the Renters’ Rights Bill continues to move forward as a major rental market reform:

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• Elimination of no-fault evictions (Section 21), according to gov.uk.

• Default periodic leases, which tenants can end with two months’ notice.

• Limits on rent increases, allowed only once per year.

• Ban competitive bidding and excessive advance payments.
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Although debated since 2023, its progress in 2025 shows a shift toward a more regulated and less flexible market for large property owners. It’s worth noting that the bill is still in Parliament and will be implemented gradually.

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Consequences for large property owners

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• Less control over income and lease terms due to periodic contracts.

• Longer processes to recover properties after tenancy.

• Weaker cash flow from bans on advance payments.

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Practical tips to adapt

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• Review leases and adapt them to the new rental regulations.

• Strengthen tenant selection and communication processes.

• Adjust financial strategies to account for reduced upfront cash flow.

• Stay informed through associations like the NRLA.

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Spain

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The Housing Law 12/2023 establishes a specific framework for large property owners:

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• A large property owner is defined as anyone holding more than 10 residential units or over 1,500 m² of residential space; in stressed areas, the threshold drops to five units.

• Municipalities can apply a progressive property tax surcharge (IBI) on homes left vacant for more than two years, ranging from 50% to 150% of the tax base. Its application depends on each locality.

• In 2025, the Reference Index for Rental Updates (IRAV) comes into force, replacing the CPI as the cap for rent increases.

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Consequences for large property owners

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• Increased administrative control and oversight.

• Tax surcharges pressuring owners to put vacant homes back on the market.

• Lower profit margins with the IRAV as the benchmark.

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Practical tips to adapt

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• Check whether your portfolio qualifies as a large property owner.

• Avoid accumulating vacant homes.

• Plan income projections using the IRAV benchmark.

• Seek legal and fiscal support to ensure compliance.

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The transformation of rental regulations is forcing large property owners to rethink their strategies. Beyond the legal changes in each country, the challenge lies in adapting with agility: anticipating financial adjustments, digitizing processes, and exploring markets with less regulatory pressure. Those who act proactively will not only safeguard profitability but also seize opportunities in a shifting, increasingly regulated rental market.