Spain is currently grappling with soaring housing costs, which have sparked significant discontent among its citizens. This unrest reached a peak following a nationwide strike and large-scale street protests. In response, the Permanent Commission of the Spanish Parliament passed a new housing policy on Thursday, November 12, with only a single vote margin. This new legislation aims to extend protections for vulnerable tenants against evictions, impose limitations on rent increases, and curb real estate speculation. However, the long-term sustainability of these measures hinges on the outcomes of the upcoming elections scheduled for the end of this month.
On Wednesday, November 11, workers across Spain participated in a national strike to voice their opposition to the rising housing costs. According to reports from the Associated Press, acting Minister of Housing Isabel Rodríguez emphasized in Parliament that the rights to housing need support not only on the streets and in workplaces but also in the forthcoming elections.
Even after the dissolution of the Spanish Parliament, a group of 69 legislators forms the Permanent Commission to handle pertinent matters. The housing bill, which was passed with a narrow vote of 35 in favor and 34 against, establishes that tenants recognized by social services as economically or socially vulnerable cannot be evicted as long as local governments fail to provide alternative housing options. This measure is set to remain in effect until 2030.
The new law also prohibits landlords from raising rents beyond the government’s local rental reference index. Furthermore, it restricts real estate agents from purchasing residential properties at prices below 70% of property valuations to deter speculative practices characterized by bulk acquisitions at low prices followed by resale at higher prices.
In an additional step toward alleviating housing issues, the law imposes a 10% tax on apartments rented out to tourists and offers tax incentives to encourage homeowners to rent their properties. It also includes government-supported first-time home purchase loans.
However, another housing initiative aimed at automatically renewing rental agreements at tenants’ requests was rejected. Under this proposal, landlords would have been required to compensate tenants with an amount equivalent to one year’s rent if they wished to terminate a lease. This proposal ultimately failed with 34 votes in favor and 35 votes against.
The Spanish government initially proposed these housing measures back in October, but they were thwarted by a coalition of conservative Popular Party (PP) and other right-wing parties. Subsequently, Prime Minister Pedro Sánchez announced early elections, which are set to take place on November 29.
Alberto Núñez Feijóo, the leader of the Popular Party, has indicated that should they assume power after the elections, they would annul the housing regulations enacted by the leftist government. The Popular Party currently leads in opinion polls.
The Popular Party opposes these housing policies, arguing that such restrictions could lead landlords to reduce the availability of rental properties, further tightening housing supply and driving prices upward. They have pledged that if they regain power, they will promote the construction of one million new homes and reduce taxes and administrative restrictions on real estate development.
Consequently, while the housing law passed on Thursday represents a temporary victory for supporters of tenant protections, its future remains uncertain and will be heavily influenced by the electoral results on November 29.