Spanish Parliament approves measures for more tenant protection
Protection against evictions and rent regulation decided, while the opposition announces resistance.
Quick Look
- The Spanish transitional parliament has passed a decree to combat the housing crisis.
- It includes protection against evictions and rent regulation.
- The opposition party PP announced that it would revoke the decree if it won the election.
AI-generated summary
Why It Matters
The Spanish government under Pedro Sánchez is facing a massive housing crisis with a shortfall of 750,000 units. Parliament was dissolved after rejecting previous decrees.
A majority of one vote was enough: Spain's transitional parliament approved a government decree to combat the housing shortage. This enshrines protection against evictions, stronger regulation of rental agreements and a ban on the purchase of apartments by “vulture funds” that are well below market value by 2030.
There should also be tax breaks for tenants and landlords as well as stricter rules for temporary rental agreements. However, a second decree, which, among other things, provided for an automatic extension of rental contracts that were about to expire, did not find a majority.
The regular parliament rejected the two decrees against the housing crisis of the left-wing minority government of Prime Minister Pedro Sánchez in October with the votes of the conservative opposition. Sánchez then called a new election for November 29th and parliament was dissolved.
Exactly one more vote
According to the constitution, the so-called Standing Committee then took over parliamentary work. It consists of 68 representatives and a chairwoman, who are selected proportionally to the strength of the parliamentary groups. Due to rounding in the allocation of seats to smaller factions, the governing parties and their partners currently have a majority of one vote.
The opposition sharply criticized the government's actions. Sergio Sayas from the conservative People's Party PP denounced a "fraud" by the government.
Rent decree soon to be lifted?
The PP, the largest opposition party, has already announced that it would revoke the rent decree if it wins the election. While the Sánchez government relies on state investments, public housing, rent caps and protective measures, opposition leader Alberto Núñez Feijóo (PP) is pursuing a supply-side approach with tax cuts, reductions in bureaucracy and stronger property protection.
Crisis in the housing market
Most polls currently predict that the PP, together with the right-wing populist Vox, will have an absolute majority of parliamentary seats. The housing market crisis will be one of the biggest challenges for the next government, regardless of which parties win the election and form the next government.
The Spanish central bank currently estimates the shortage at around 750,000 housing units. Rents and property prices have been rising significantly faster than real wages for years. Since there is a high level of immigration to Spain, but at the same time too few new apartments are being built, prices are rising rapidly.
Mass demonstrations for affordable housing
Just the day before there were demonstrations for affordable housing during a general strike in several major Spanish cities. While the unions spoke of a successful strike that exceeded expectations, the employers' association described the strike as a failure.
What to Watch
AI outlook — possibilities, not facts
Repeal of the rent decree if the PP wins the election.
Likely · Within months
Open Questions
- How will the repeal of the decree affect a PP election victory?
- When will the new government be formed after the election on November 29th?
