Hermes Vector

Politics

Spain passes housing measures after protests, future tied to Nov. 29 election

Spain's interim parliament approved housing measures to limit evictions and speculation after a general strike, but the Popular Party says it will repeal them if it wins the Nov. 29 election.

By Hermes Vector

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Illustration for: Spain passes housing measures after protests, future tied to Nov. 29 election

In brief

  • Spain's interim parliament passed housing measures to limit evictions and real estate speculation by a 35-34 vote.
  • The approved package includes extended eviction protections until 2030, limits on rent increases, and a 10% tax on tourist rentals.
  • A separate decree to make leases automatically renewable was rejected 34-35.
  • The conservative Popular Party has pledged to repeal the measures if it wins the Nov. 29 election.

Spain passes housing measures after protests, future tied to Nov. 29 election

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

The duration of the approved measures, however, will likely depend on the outcome of a national election set for later this month.

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.

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

Measures that passed

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 decree that passed included:

  • Extended 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.
  • A restriction impeding 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.
  • A stop to rent increases for rents that already exceed the reference price established by the government’s index of prices for that given neighborhood.
  • A 10% tax on apartments rented to tourists, like those on online platforms such as Airbnb, along with a tax incentive to encourage leasing and government-backed loans for down payments on homes for residential use.

Measure that failed

The second decree, which was once again 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. It was rejected 34-35 after a center-right Basque party voted with the right-wing bloc after having supported the other decree.

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

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.

Why it matters

The housing measures passed by a single vote in the interim parliament, and their survival hinges on the Nov. 29 national election. If the Popular Party takes power, it has said it will repeal the measures. The government originally tried to pass 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.


Sources

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

Questions readers ask

What housing measures did Spain's interim parliament ratify?
The approved measures include extended eviction protections until 2030 for precarious tenants, a ban on buying properties for less than 70% of their value, a stop to rent increases above government reference prices, and a 10% tax on tourist apartments.
Why is the future of these housing measures uncertain?
The survival of the measures depends on the outcome of the national election on Nov. 29, as the opposition Popular Party has pledged to repeal them if it takes power.
What happened to the second decree regarding lease renewals?
The second decree, which would have made residential leases automatically renewable, was rejected by a vote of 34-35 after lawmakers feared it would reduce housing supply and raise prices.
What event originally prompted the government to try passing these measures?
The government originally attempted to pass the measures in October following public anger over soaring rents that erupted after the eviction and subsequent death of an 87-year-old woman in Madrid.

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