Thousands protested in Madrid against rising housing costs, a major political challenge for PM Sanchez ahead of 2027 elections. Spain faces a housing shortage and high rents driven by tourism and population growth, with prices up 13% year-on-year. A government plan aims to build more public housing.
Thousands gathered in Madrid to protest soaring housing costs, a major political challenge for PM Sanchez ahead of 2027 elections. Rising rents, driven by tourism and population growth, have made homeownership difficult, with Spain facing a significant housing shortage.
Senior UK ministers have rejected proposals for a one-year freeze on private sector rents, with Housing Secretary Steve Reed and Housing Minister Matthew Pennycook publicly criticising the idea less than 48 hours after it was revealed. The government split has fueled speculation about Chancellor Rachel Reeves' job security following reports that Keir Starmer considered sacking her after local elections. Downing Street has ruled out the rent freeze and insists Reeves retains the PM's confidence, though Starmer stopped short of guaranteeing her position at Prime Minister's Questions. City investors are watching closely, with some warning leadership uncertainty could push up government bond yields further.
Shares in UK buy-to-let lenders Paragon and OSB Group fell 2.4% and 3.6% respectively on Tuesday after speculation that chancellor Rachel Reeves is considering a one-year rent freeze for private landlords in England to protect households from rising costs linked to the Middle East conflict. The education secretary later said the measure is not actively being pursued, while the Renters' Rights Act comes into force on Friday bringing significant sector changes.
Chancellor Rachel Reeves is considering imposing a one-year rent freeze on private sector homes in England as part of a major cost of living package. The measure, which would ban landlords from raising rents for a limited period, represents a significant reversal from her previous stance against rent controls. Ministers are increasingly worried about the impact of the Iran conflict on mortgages and household budgets, with Labour expecting heavy losses at next month's local elections and economists predicting a surge in inflation.
