Spain Approves One Housing Decree Ahead of November 29 Election

Spain’s interim lower house of parliament ratified housing measures designed to limit evictions and real estate speculation on Thursday, a day after a general strike and major street protests over the country’s housing cost crunch.

The Vote

The interim lower house has 69 members, compared with 350 in the regular parliament, which was dissolved when the election was called. The first decree passed in a 35-34 vote. The second decree was rejected 34-35 after a center-right Basque party voted with the right-wing bloc.

Measures in the Approved Decree

The decree that passed includes several provisions:

• Extends protections against evictions for tenants deemed by social services to be in a precarious financial or social position as long as regional authorities can’t offer them an alternative residence. The measure will last until 2030.
• Impedes any company involved in the real estate market from buying properties for less than 70% of their value, meant to stop wholesale purchase of properties at low prices and their subsequent resale at higher prices.
• Stops rent increases for rents that already exceed the reference price established by the government’s index of prices for that given neighborhood.
• Establishes a 10% tax on apartments rented to tourists, like those on online platforms such as Airbnb.
• Includes a tax incentive to encourage leasing and government-backed loans for down payments on homes for residential use.

The Rejected Decree

The second decree, which was rejected, would have made residential leases automatically renewable by tenants. If owners wanted to break contracts, they would have had to compensate tenants with a year’s worth of rent. Many lawmakers deemed that measure would have led homeowners to withdraw properties from the rental market, triggering a drop in supply and even higher prices.

Political Context

Spain’s government had tried to push through the measures in October after public anger over soaring rents erupted following the nationally-televised eviction and subsequent death of an 87-year-old woman in Madrid. The PP and other conservative parties aligned in parliament to reject the measures. Prime Minister Pedro Sánchez responded days later by calling an early election.

The leading opposition party, the conservative Popular Party, has said that it will repeal the housing measures of the left-wing government if it takes power, which polls indicate is a real possibility. The PP has pledged to oversee the construction of one million new homes while slashing taxes and red tape for real estate development if they return to power after eight years of Socialist-led rule.

Interim Housing Minister Isabel Rodríguez told lawmakers: “Yesterday, the right to housing won on the street and in workplaces, and I hope it will win again at the ballot box,” in reference to Wednesday’s general strike and the upcoming election on Nov. 29.

PP lawmaker Sergio Sayas told the minister: “You promised us more housing and have only given us tons of demagoguery.”

Why it matters

The duration of the approved measures will likely depend on the outcome of the national election set for Nov. 29. If the Popular Party takes power, it has pledged to repeal the housing measures.

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Sources

• abcnews.com: Spain approves housing measures after huge protests. Duration may depend on election - ABC News
• ca.finance.yahoo.com: Spain approves housing measures after huge protests. Their duration may depend on election result
• srnnews.com: Spain approves one of housing decrees that triggered snap election - SRN News

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.