The new Andalusian Housing Law (Law 5/2025), End of the compulsory deposit of the security deposit at the AVRA

The rental market in Andalusia is preparing for a significant change. The new Andalusian Housing Law (Law 5/2025) comes into force on 24 January and brings important changes that directly affect landlords, tenants and real estate professionals.

End of the mandatory deposit of the security deposit with the AVRA

One of the most striking changes is that the law, through its sixth additional provision, eliminates the obligation to deposit the security deposit for urban property rentals with the corresponding regional body. Until now, this procedure was carried out before the Andalusian Housing and Rehabilitation Agency (AVRA) using the well-known Form 806.

With the entry into force of the regulation, this step is no longer necessary: the deposit will be kept by the landlord, without having to pay it into the Administration. For many landlords, this is a bureaucratic relief, especially in cases where there is frequent tenant turnover.

Furthermore, the law does not limit this measure to residential properties. As it does not distinguish between residential rentals and rentals for ‘other uses’, it also includes contracts for commercial premises, offices or urban warehouses, which are also exempt from deposit with AVRA.

What about deposits already paid?

The rule is not retroactive. Therefore, deposits paid before 24 January 2026 remain under the previous system: they will continue to be deposited and their return will be managed in accordance with the procedure in force at the time they were paid.

The deposit is still mandatory under the LAU

Although Andalusia is eliminating the administrative deposit, the obligation to require a deposit does not disappear. This is because it is imposed by Article 36 of the Urban Leasehold Law (LAU), a state regulation that is not modified by regional law.

In practice, the tenant must continue to pay:

1 month’s rent for a primary residence.

2 months’ rent for other uses (e.g. commercial premises or office).

Additional guarantees may be added to this, if agreed.

Why the system is changing: the clash between legal deadlines and administrative procedures

This reform seeks to resolve a problem that has been causing tension for some time. The LAU requires the landlord to return the deposit within a maximum of one month from the handover of the keys; if they fail to do so, the amount begins to accrue interest in favour of the tenant.

The conflict arose when the deposit was held by the Administration and the return was delayed: the landlord could be forced to advance the money from their own funds in order to comply with the legal deadlines.

The LAU stipulates that if the Administration is late in returning a deposited deposit, legal interest is generated in favour of the landlord (third additional provision). However, in practice, this could be detrimental to the tenant, who had to wait longer to get their money back.

With the new system, as the deposit remains in the hands of the owner, this imbalance is eliminated and the landlord regains real control over the return deadlines.

With this decision, Andalusia is moving away from the most common model in Spain, where in most regions the administrative deposit is still mandatory.

Other relevant developments in the Andalusian Housing Law

The reform of the deposit is only part of a broader regulation aimed at increasing the supply of affordable housing in a region with a recognised deficit, especially in areas where access to housing is more difficult. The law is committed to measures to facilitate land use, streamline procedures and strengthen public-private partnerships as a way of expanding the housing stock.

Promotion of social housing and creation of priority areas

The law promotes social housing, allowing increases in density and buildability when there is a commitment to allocate properties to this regime. Priority housing areas are also introduced (Article 21), where the Administration will concentrate aid for rent, purchase and renovation in order to respond to greater difficulties in access.

Coordination in the event of evictions and illegal occupation

The law strengthens public action through a coordinated framework. On the one hand, it creates the Commission for Coordination on Evictions and the Fight against Illegal Occupation (Chapter II of Law 5/2025), with the participation of regional ministries and public bodies to establish common guidelines and coordinate housing, social services and justice.

On the other hand, the Andalusian Information and Advice System is established for people undergoing eviction or repossession proceedings and for owners affected by squatting.

In addition, local councils will be able to set up Municipal Advisory Units to provide support, assess situations of vulnerability, coordinate housing alternatives and channel aid where appropriate.

Renovation and improvement of housing quality

Another important focus is the renovation of the housing stock, with an emphasis on energy efficiency, sustainability and the elimination of substandard housing. To promote more stringent standards, the Technical Commission for Housing Quality in Andalusia has been created (Article 30.d).

Penalty system: heavy fines

The law distinguishes between general housing offences and those specifically related to social housing. The penalties can be very high:

Up to €60,000 in very serious cases involving housing in general (Article 114).
Up to €120,000 for very serious offences related to social housing (Article 117).