Spanish Parliament rejects government decrees against housing shortage

The Spanish Parliament has rejected the government's plans to combat the housing shortage. The majority of MPs voted against two decrees that provided for a rent freeze and expanded protection against dismissal. The conservative People's Party PP, the right-wing populist Vox and the conservative Catalan separatist party Junts voted against it.

Prime Minister Pedro Sánchez called on MPs to vote for the decrees to prevent damage to society. Housing Minister Isabel Rodríguez (PSOE) defended the measures in parliament. The vote is about whether you are on the side of the people or on the side of the “vulture funds” that speculate in housing, she said.

Opposition spokesmen accused the government of saying the proposed measures would reduce the supply of housing and drive up rents even further. Míriam Nogueras, Junts' parliamentary speaker, called on the government to withdraw its two decrees and instead offered talks on changes. The government had hoped until the end that Junts would at least agree to the first decree.

In view of the decision, there was speculation in the Spanish media whether Sánchez could bring forward the parliamentary elections planned for next year. Sánchez has not yet commented on this issue.

The background is the rising rental prices in Spain. The average rent in the country has almost doubled in the past ten years. According to the real estate portal Idealista, the average price per square meter rose from 8.20 euros in 2016 to 15.10 euros this year. For young people, the average rent of 1,176 euros corresponds to almost 99 percent of their average salary, according to the Spanish Youth Council.