Spain passes key housing reforms following nationwide strike

The Spanish parliament has approved new measures designed to limit evictions and curb real estate speculation, aiming to improve housing affordability across the country. These legislative actions were finalized on Thursday, just one day after a nationwide general strike highlighted the severity of the ongoing housing crisis.

The ratification of these housing measures by the interim lower house of parliament comes at a critical political juncture. The longevity of the new laws is expected to hinge on the results of a snap election that is scheduled to take place later this month in November.

Political opposition to the reforms remains strong. The conservative Popular Party, which leads the opposition, has declared its intention to repeal the initiatives of the current left-wing government if it secures power. Recent polling data suggests that a shift in government control is a distinct possibility.

The urgency for legislative action was amplified by a series of large-scale demonstrations that swept through Spain in September. Public sentiment shifted dramatically after televised footage showed the eviction of 87-year-old Maria del Carmen Abascal, widely known as Maricarmen, from her home. The event shocked many citizens and galvanized the movement for housing reform.

Following the initial protests, temporary protest camps were established in several major cities. The most significant of these was located in Madrid’s iconic Puerta del Sol square. The situation escalated further in October when Maricarmen passed away, sparking national outrage and prompting Prime Minister Pedro Sanchez’s minority government to hastily present two legislative decrees.

In response to the parliament’s failure to pass the initial decrees, Sanchez called for a general election that had originally been planned for 2027. The first set of proposals included enhanced protections for tenants against eviction and provisions for the automatic renewal of rental contracts.

Conservative parties, including the Popular Party, aligned to reject these initial measures. They argued that the new laws would have a negative impact on the housing market dynamics. Instead, the opposition proposed a strategy focused on a significant increase in new construction as the primary solution to the crisis.

The political deadlock led to a massive show of support for the reform on Wednesday. Hundreds of thousands of Spaniards participated in a 24-hour work stoppage, calling attention to soaring rents and the broader high cost of living. The main trade unions had called for this walkout after the government’s decrees were initially blocked in the full parliament.

To overcome the previous impasse, Sanchez introduced two new decrees that were nearly identical to the rejected versions. These were presented to a smaller parliamentary council on Thursday, a procedural move that gave the government a higher probability of passing the legislation.

The first new decree was approved by a narrow margin of 35 to 34. It extends eviction protections for tenants who are deemed by social services to be in a precarious financial or social position, provided that regional authorities are unable to offer them an alternative residence. A second measure aimed to reduce speculation by preventing real estate companies from purchasing properties for less than 70 percent of their value. However, this specific provision was rejected with a vote of 34 to 35. The center-right Basque party voted with the right-wing bloc on this issue, citing concerns that the measure might cause homeowners to withdraw properties from the rental market, potentially reducing supply and driving prices even higher.