Spanish Government prepares housing decree to curb rent and evictions

Negotiations within the Left Coalition and Parliamentary Hurdles

While the executive branch moves toward Tuesday’s cabinet meeting, deep divisions persist within the left-wing coalition itself. Negotiations between the Spanish Socialist Workers’ Party (PSOE) and Sumar remain tense over the depth of the proposed regulations. Sumar has publicly rejected calls to water down the measures to secure broader support from regional parties like Junts per Catalunya and the Nationalist Party of Basque Country (PNB). These two regional forces will hold critical influence in the Congress of Deputies one month from now, where the decree must win formal ratification to survive.

Sumar representatives have criticized the current trajectory of the text. The party warned that the draft falls short of offering complete protection against evictions, regulating seasonal and room rentals adequately, or ensuring proper contract extensions. Minister of Childhood Sira Rego stated on social media that the administration will not permit the dilution of measures demanded by the public or validate a text that fails to meet expectations. Former Equality Minister and prominent Podemos figure Irene Montero echoed these concerns in a television interview on TVE, questioning whether the left should abandon its core platform to appease Junts and the Nationalist Party of Basque Country (PNB).

Key Measures Outlined in the Draft Decree

Segons el Ministeri d’Habitatge, el decret llei d’habitatge inclou les següents mesures:

• Eviction Protections: Strengthening safeguards for vulnerable families, though debate continues over distinguishing between large and small property owners. Junts has previously aligned with the Partido Popular and Vox to vote down blanket eviction bans, arguing that public administrations should cover unpaid rent on behalf of small-scale landlords.
• Speculative Purchase Bans: Outlawing speculative housing acquisitions by vulture funds, a measure that enjoys broader potential consensus across political lines, including backing from Junts.
• Rental Contract Stabilization: Introducing measures to stabilize tenancy agreements, addressing demands from tenant syndicates calling for indefinite leases—a point of friction for Junts and the Nationalist Party of Basque Country (PNB).
• Seasonal and Tourist Rental Regulations: Clamping down on what the Ministry of Housing terms fraudulent seasonal contracts often chained together to bypass long-term tenancy laws, alongside reclassifying tourist apartments so they are taxed as commercial businesses.
• Fiscal Incentives and Subsidies: Providing tax breaks for tenants and landlords who lower rental prices, alongside financial assistance for first-time homebuyers.
• Construction and Public Housing Support: Implementing a reduction in Value Added Tax (VAT) for construction projects dedicated permanently to social housing, designed to incentivize developers to expand the affordable housing stock.

Contrasting Political Stances and Next Steps

The path forward depends heavily on whether the coalition can bridge the gap between its left-wing members and center-right regional partners. Ministry of Housing sources maintain that discussions with parliamentary groups remain ongoing to craft an ambitious and transversal royal decree. At the same time, figures like Irene Montero have criticized the reliance on parliamentary arithmetic, arguing that compromises risk favoring property holders over vulnerable populations.

The Council of Ministers is set to review the text on Tuesday, after which the legislative package will begin its critical countdown toward a congressional vote.