Housing shortage: Spain's transitional parliament approves housing decree before new elections

Madrid. The Spanish transitional parliament has adopted measures to curb evictions and real estate speculation. MPs met for the vote on Thursday after tens of thousands of people across the country protested against high housing costs with a general strike and large demonstrations a day earlier.

How long the regulations that have now been adopted will apply will likely depend on the outcome of the parliamentary election on November 29th. The conservative People's Party PP, the strongest opposition party, has said it will reverse the left-leaning government's measures if it comes to power. Surveys suggest this is possible.

The government had already tried to enforce the measures in October. The trigger was outrage over sharply rising rents and the eviction of an 87-year-old woman in Madrid, which was broadcast on television. The woman died a short time later in hospital. The PP and other conservative parties blocked the measures in parliament. Prime Minister Pedro Sánchez then called for early elections.

The government waited and then brought the project back to the interim parliament. There they and the allied progressive parties have a slightly more favorable distribution of seats. The interim parliament has 69 members - compared to 350 in the lower house, which was dissolved when new elections were called.

The government also divided the measures into two decrees. She moved the part with little chance of success into a separate second decree so as not to endanger the rest of the package. The first decree, which contains the bulk of the measures, was passed on Thursday by 35 votes to 34. As expected, the second decree was again rejected.

The adopted decree includes a regulation that extends protection against evictions for tenants. This applies to those affected whose financial or social situation is assessed by social services to be precarious and as long as the authorities cannot offer them alternative housing. This regulation applies until 2030.

In addition, companies should be prevented from purchasing real estate for less than 70 percent of their value. This is intended to prevent properties from being bought up on a large scale at low prices and then resold at higher prices. The decree also prohibits rent increases if the rent is already above the reference value set for the respective district. A tax of ten percent will be introduced for apartments that are rented out to tourists for a short period of time.

The second decree, which was again rejected, stipulated that rental contracts could be automatically renewed. If owners wanted to end the contracts, they would have had to compensate the tenants with a sum equal to one year's rent. In such a case, many MPs feared a decline in supply and even higher prices.