Spain passes housing measures to limit evictions, election may decide their fate

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 European nation'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 that it will repeal the housing measures of the left-wing government if the PP takes power, which polls indicate is a real possibility.

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:

• A measure that 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.
• An attempt to reduce real estate speculation by impeding any company involved in the real estate market from buying properties for less than 70% of their value.
• 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.
• A tax incentive to encourage leasing and government-backed loans for down payments on homes for residential use.

Measure that was rejected

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.

Too many lawmakers deemed that measure would have led homeowners to withdraw properties from the rental market, 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.

Background

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, and Prime Minister Pedro Sánchez responded days later by calling an early election for Nov. 29. The government then waited to try again to pass the measures with a smaller interim parliament, where it and aligned progressive parties had a slightly more favorable distribution of seats. The government split the measures into two decrees, with one measure that appeared doomed from the start being separated into a second decree so as not to put the rest in danger.

Why it matters

The housing measures address public anger over soaring rents and evictions in Spain. Their survival beyond the Nov. 29 election depends on which party wins, with the opposition Popular Party pledging to repeal them if it takes power.

---

Sources

• ctvnews.ca: Spain's new housing measures will depend on upcoming election
• thestar.com: Spain approves housing measures after huge protests. Their duration may depend on the election

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