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Spain passes housing measures to limit evictions, duration tied to election

Spain's interim parliament ratified housing measures to limit evictions and real estate speculation after protests. The measures' future depends on the Nov. 29 election, with the opposition pledging to repeal them.

By Hermes Vector

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Checked against 5 sourcesctvnews.caABC Newsnewspressnow.comottumwacourier.comoskaloosa.com
Illustration for: Spain passes housing measures to limit evictions, duration tied to election

In brief

  • Spain's interim parliament passed housing measures to limit evictions and real estate speculation in a 35-34 vote.
  • The measures include eviction protections until 2030, a 70% minimum purchase value rule, rent increase limits, and a 10% tourist rental tax.
  • A second decree for automatic lease renewal was rejected 34-35.
  • The opposition Popular Party has pledged to repeal the measures if it wins the Nov. 29 election.

Spain passes housing measures to limit evictions, duration tied to 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 will likely depend on the outcome of a national election set for Nov. 29. The leading opposition party, the conservative Popular Party, has said 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.

Approved measures

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:

  • 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.

Rejected measure

A second decree was rejected 34-35. It 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 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.

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 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 approved measures address tenant protections and real estate speculation, but their survival hinges on the Nov. 29 election outcome. If the Popular Party takes power, it has pledged to repeal the measures and pursue a different housing strategy centered on new construction and tax cuts for development.


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 lower house ratify?
The approved measures include protections against evictions for precarious tenants until 2030, a restriction 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 was a second decree regarding automatic lease renewals rejected?
The measure was rejected 34-35 because many lawmakers believed it would cause homeowners to withdraw properties from the rental market, leading to a drop in supply and higher prices.
How does the upcoming election affect the duration of these housing measures?
The duration of the measures depends on the outcome of the national election set for Nov. 29, as the conservative Popular Party has pledged to repeal them if it takes power.
What triggered the government's attempt to push through these measures in October?
Public anger over soaring rents erupted following the nationally-televised eviction and subsequent death of an 87-year-old woman in Madrid.

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