Spain’s interim lower house of parliament ratified a set of housing measures on Thursday, aiming to limit evictions and curb real estate speculation. This legislative action followed a day of major street protests and a general strike, which highlighted the intensity of the country's housing cost crisis.
While the government secured a victory with these measures, their long-term duration remains uncertain, as the outcome of the national election scheduled for November 29 will likely determine their future.
Interim Housing Minister Isabel Rodríguez addressed lawmakers following the vote, stating, “Yesterday, the right to housing won on the street and in workplaces, and I hope it will win again at the ballot box.” The government’s push for these regulations follows mounting public anger, which intensified after the nationally-televised eviction and subsequent death of an 87-year-old woman in Madrid earlier this year.
Initial attempts to pass these protections in October were thwarted when the People's Party (PP) and other conservative factions aligned in parliament to reject the measures, prompting Prime Minister Pedro Sánchez to call an early election.
The government subsequently waited to introduce the measures in a smaller interim parliament, which consists of 69 members compared to the standard 350, hoping for a more favorable seat distribution.
To ensure the survival of the core package, the government split the legislation into two separate decrees; the first passed with a 35-34 vote, while the second was rejected as expected.
The approved decree targets real estate speculation by preventing companies from purchasing properties for less than 70% of their market value, a move intended to stop the wholesale acquisition of homes at low prices for later resale. Furthermore, the legislation prevents rent hikes for properties already priced above the government's established index for specific neighborhoods.
The new rules also introduce a 10% tax on apartments rented to tourists via online platforms like Airbnb, alongside tax incentives for leasing and state-backed loans to assist with residential down payments.
Conversely, the rejected second decree would have mandated that residential leases be automatically renewable by tenants, requiring owners to compensate tenants with a full year’s rent if they wished to terminate a contract. Critics, including PP lawmaker Sergio Sayas, argued that such measures would cause owners to withdraw properties from the market, thereby reducing supply and driving up prices further.
Sayas criticized the minister, claiming, “You promised us more housing and have only given us tons of demagoguery.” The PP has countered with its own platform, promising to oversee the construction of one million new homes while reducing taxes and administrative hurdles for development if they return to power.
Another main feature is an attempt to reduce real estate speculation by impeding any company involved in the real estate market from buying properties for less than 70% of their value. That is meant to stop wholesale purchase of properties at low prices, and their subsequent resale at higher prices.
Many lawmakers deemed that measure would have led homeowners to withdraw properties from the rental market, triggering a drop in supply and even higher prices. It was rejected 34-35 after a center-right Basque party voted with the right-wing bloc after having supported the other decree.
