Housing Crisis and Rental Regulations in Spain

According to Reuters, Madrid Regional President Isabel Díaz Ayuso described the actions as an attempt to "change the rules of the game" on existing contracts and asked the activists if there was an age limit for paying rent.

In order to calm the reactions, the central government plans to bring a new bill to the parliament after the council of ministers meeting tomorrow.

Sánchez asked for support from other parties for the regulation, which would include automatic extension of rental agreements and stricter rules on evictions.

A similar bill was rejected earlier this year because the ruling party did not have a majority in parliament.

According to data from real estate portal Idealista, the average rental price per square meter in the country has almost doubled in the last decade, reaching 15.10 euros in August.

According to official data, house prices for sale increased by more than 50 percent in the same period, reaching 2 thousand 355 euros per square meter.

The Bank of Spain calculates that there is a 750 thousand housing deficit in the country and this number may exceed 1 million by 2028.

Approximately 120 thousand new houses are built annually in the country; This number corresponds to one-sixth of the level before the 2008 global financial crisis.