Spain housing package wins backing as standoff sparks snap election

Parliament backs housing package

Spain has secured parliamentary backing for a sweeping housing package after the defeat of earlier measures set off a snap election and protests that culminated in this week’s general strike. The government presented the measures on Friday, one day after parliament’s standing committee upheld a decree extending eviction protections, allowing longer rental contracts and restricting speculative property purchases.

Lawmakers rejected a separate decree that would have introduced indefinite lease renewals and compensation for tenants denied renewals. The votes took place hours before campaigning began for the Nov. 29 election, which Prime Minister Pedro Sanchez called after parliament rejected earlier housing decrees in October.

Housing crisis fuels public pressure

Housing ranked as Spaniards’ leading concern in an October survey by public pollster CIS, with nearly 56% listing it among the country’s three main problems. The crisis also drove Wednesday’s general strike — Spain’s first in 14 years — as unions demanded affordable housing and higher wages.

The opposition Popular Party accused the government of reviving the measures “through the back door” by using the standing committee, where a different balance of seats allowed it to overcome opposition from Catalan separatist party Junts. Housing Minister Isabel Rodriguez defended the package and linked it to Wednesday’s protests: “Yesterday, the right to housing won in the streets and workplaces. And I hope it wins at the ballot box too,” she said.

Measures set out rival approaches

The package extends eviction protections for vulnerable people through 2030, subject to conditions, and allows eligible tenants to request lease extensions of up to two years. It restricts annual rent increases through 2027, allows for two-year lease extensions, tightens temporary rental rules and introduces a 10% value-added tax on short tourist stays. The measures also limit the combined rent charged for individual rooms and introduce tax incentives for landlords who lower rents.

The measures highlight competing approaches to the housing crisis. Sanchez’s Socialists favor stronger tenant protections alongside more public and affordable housing, while the Popular Party emphasizes construction, pledging 1 million homes, simpler planning procedures and tax relief for young buyers. Its leader, Alberto Nunez Feijoo, has promised to repeal the approved decree if elected.