Escalation: Spain Government Proposes Emergency Housing

Spain’s cabinet approved two emergency housing decrees and sent them to Congress for ratification. The package extends the existing halt on evicting vulnerable tenants with no alternative housing to 31 December 2030. The government asked for an extraordinary vote on Friday and has 30 days from publication to secure backing.

The first decree targets speculative investment. It restricts corporate funds from buying homes through 2028 when the price is under 70% of the official valuation, and it covers bulk purchases of entire buildings unless the units are used for social housing. It also regulates short‑term and room‑by‑room rentals and requires public authorities to compensate private landlords when evictions are suspended.

The second decree is aimed at keeping tenants in their homes. Standard five‑year leases would renew automatically for another five years, and a landlord who refuses must give six months’ notice and pay compensation equal to one year of comparable rent unless reclaiming the home for themselves or close family. Tenants on current contracts can seek an extraordinary extension and limits on rent hikes through 31 December 2027, with no increase where the current rent already exceeds the official index and a 2% cap if no new deal is reached.

The coalition lacks a majority to pass the decrees. The first text was expected to draw votes from conservative Catalan and Basque parties, but Junts said it was far from agreeing and sought protections for small landlords. The second decree faced resistance even as a separate deal on automatic lease renewals advanced.

AI-synthesized from multiple reported sources