The rental market in Andalusia is undergoing one of its most significant transformations in recent years. The new Andalusian Housing Law (Law 5/2025), which comes into force on 24 January, introduces major changes that will directly affect landlords, tenants and estate agents.
No more rental deposit in Andalusia
The sixth additional provision of this regional law removes the requirement to pay a security deposit for urban property rentals. Previously, the process involved the Andalusian Housing and Rehabilitation Agency (AVRA) and the well-known Form 806.
From this month, that step is no longer required, and the landlord will retain the deposit. This change provides administrative relief for many landlords, particularly those with high tenant turnover.
The regulation applies equally to residential and non-residential properties. Leases for commercial premises, offices and urban warehouses are also exempt from paying the deposit to AVRA.
What will happen to the deposits made before the measure comes into effect?
The new law is not retroactive. Deposits made before 24 January 2026 remain subject to the previous regulations, meaning they will continue to be held by AVRA and will be returned in line with the procedure in place at the time of deposit.
What does the Urban Leases Law say about the rental deposit?
The obligation to require a deposit remains, as it derives from Article 36 of the Urban Leases Law (LAU), a state regulation unaffected by Andalusian legislation. Tenants must continue to pay one month’s rent for standard residential leases and two months’ rent for other types of contracts, without prejudice to any additional guarantees that may be agreed.
The conflict between the LAU and the administrative management
The elimination of the administrative deposit is intentional. For years, the system has created friction between state regulations and administrative practice. Under the LAU (Urban Leases Act), landlords must return the deposit within one month of handing over the keys, with interest accruing in favour of the tenant if this deadline is missed.
Problems arise when the administration exceeds this timeframe, leaving landlords in a difficult position, as they must advance the deposit from their own funds to comply with the law. The LAU does provide that, when the deposit is held by the Administration and repayment is delayed, the corresponding legal interest accrues in the landlord’s favour (third additional provision).
While this mechanism shifts the cost of delay, it ultimately disadvantages tenants, who must wait to receive their money. The new regulations eliminate this imbalance, giving landlords effective control over repayment deadlines.
In doing so, Andalusia removes this administrative requirement and distinguishes itself from most other autonomous communities, where the deposit remains mandatory.
Other key points of Andalucía's new Housing Law
The reform of the security deposit system is not an isolated measure; it forms part of a broader law aimed at increasing the supply of affordable housing in a region facing a recognised shortage, particularly in areas with the greatest access difficulties. The regional legislation focuses on facilitating land acquisition, streamlining procedures, and strengthening public-private partnerships as a means of expanding the housing stock.
Social housing and priority areas
A key aspect is the promotion of affordable housing, allowing for increased density and building capacity when there is a commitment to allocate properties to this sector. In addition, priority housing areas are being established (Article 21) – zones where the government will concentrate support for rentals, purchases and rehabilitation in response to the greatest challenges in accessing housing.
Coordination, information and advice on evictions and the fight against illegal occupation
The law strengthens the public response to evictions and illegal occupation through a new, coordinated framework for action. It establishes the Coordination Commission on Evictions and the Fight against Illegal Occupation (Chapter II of Law 5/2025), composed of regional ministries and public bodies, tasked with setting common guidelines and ensuring that housing, social services and the justice system act in a coordinated manner.
Additionally, the Andalusian Information and Advice System on Evictions and Illegal Occupation has been launched to support individuals involved in eviction or removal proceedings, as well as owners affected by unlawful occupation.
Municipalities may also establish Municipal Advisory Units to provide local support, identify vulnerable situations, coordinate housing alternatives and channel aid where needed.
Housing rehabilitation and quality
Another key focus of the law is the rehabilitation of the housing stock, with particular emphasis on energy efficiency, sustainability and the elimination of substandard dwellings. To this end, a Technical Commission for Housing Quality in Andalusia is being established (Article 30.d) to promote more stringent standards in construction and refurbishment.
Sanctions related to housing
The Andalusian Housing Law also sets out a sanctions regime, distinguishing between general housing offences and those specifically related to subsidised housing. Fines can be substantial: up to €60,000 for the most serious general housing offences (Article 114) and up to €120,000 for very serious breaches concerning subsidised housing (Article 117).