Spain’s Prime Minister, Pedro Sánchez has suffered a significant parliamentary setback after lawmakers rejected two government decrees aimed at addressing the country’s worsening housing affordability crisis, as protesters gathered outside Parliament to demand greater protection for renters.
The failed votes dealt a blow to the government’s efforts to curb evictions, discourage property speculation and improve access to affordable rental accommodation amid mounting public frustration over rising housing costs.
The rejected measures included provisions intended to prevent the eviction of vulnerable households, introduce tax incentives to encourage property owners to rent out their homes and make residential leases automatically renewable at tenants’ request. The proposals also sought to make real estate speculation more difficult as the government attempted to ease pressure on the rental market.
The defeat followed the decision by the Catalan separatist party, Junts, to vote against both decrees, a position that had been announced shortly before the parliamentary session. Its opposition, combined with votes against the measures from the centre-right Popular Party (PP) and the far-right Vox, ensured that the government could not secure the necessary parliamentary support.
Junts is among the smaller political parties whose backing Sánchez relied on to form his government in 2023. However, its relationship with the Prime Minister has remained difficult, with the party frequently challenging government proposals.
Its leader, Carles Puigdemont, has lived in Belgium since fleeing Spain following his unsuccessful attempt to secure Catalan independence in 2017.
During a five-hour parliamentary debate, Housing Minister Isabel Rodríguez made a final appeal to Junts to reconsider its position, arguing that the government had incorporated most of the party’s proposals into the legislation. “My ministry has incorporated 90% of your proposals,” Rodríguez told lawmakers. “Vote for the decrees or at least abstain,” Rodríguez added, seeking to secure enough support to pass the measures.
However, Junts remained opposed, arguing that the proposed legislation could worsen the very housing crisis it was intended to address. The party maintained that tighter restrictions on landlords and property owners could discourage them from making homes available for rent, further reducing supply and pushing prices higher.
Míriam Nogueras, a Junts lawmaker, argued that the decrees would not adequately address speculation or protect tenants from eviction. “These decrees still allow speculators to buy property and to evict people,” Nogueras said, calling on the government to negotiate amendments to the proposals.
The government rejected the party’s demand for further negotiations, leaving the legislation vulnerable to defeat.
Sánchez made a final appeal to lawmakers at the end of the debate, describing the measures as necessary to restore fairness to the housing market and prevent further deterioration in living conditions.
Sánchez told the 349 lawmakers, “What is behind these decrees is the desire to instill order and a sense of humanity in a market that if we do not rein it in will destroy our society.” “Do the right thing, or history will judge you, and sooner than you think,” he added before the parliamentary vote, which was conducted by roll call.
The defeat comes amid growing public anger over the cost of housing in Spain, where rising rents and property prices have increasingly placed pressure on households, particularly those dependent on rental accommodation.
Spain’s Housing Crisis Fuels Protests As Rents Nearly Double
Spain’s worsening housing affordability crisis has intensified public pressure on the government, with rising rents, evictions and concerns over property speculation fuelling demonstrations across the country.
The proposed decrees had also been intended to respond to public outrage following the televised eviction of an 87-year-old woman in Madrid last week. The incident triggered demonstrations and a continuing protest camp in one of the Spanish capital’s most prominent public squares.
Demonstrators gathered outside Parliament today, holding handmade signs featuring images of vultures to condemn property speculators whom they blame for the escalating cost of housing. The protests underscored the growing pressure on the government to deliver measures that provide meaningful relief to renters.
The demonstrations reflect growing frustration among renters, many of whom face increasing difficulty securing affordable accommodation as housing costs continue to climb.
Data from real estate website Idealista indicates that the average rental price in Spain has risen from €8.20 per square metre in 2016 to €15.10 this year, representing an increase of nearly 85 per cent over the period. The rise has intensified concerns about the financial pressures facing households, particularly those in major urban centres.
The government’s rejected decrees were intended to address some of these concerns through measures aimed at protecting vulnerable tenants, discouraging speculative property transactions and encouraging landlords to offer residential properties for rent.
The parliamentary defeat has left the government without the two decrees it sought to introduce, while protests over housing affordability continue.
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