Spanish government splits housing decrees ahead of tight parliamentary vote

Parliamentary standoff over emergency decrees

The Spanish government heads into an extraordinary parliamentary vote on Friday seeking validation for its first housing decree-law, following intensive negotiations with coalition allies and regional partners. Prime Minister Pedro Sánchez expressed optimism about securing approval, even as officials in Moncloa conceded that a companion decree covering mandatory lease extensions faces likely rejection. The Popular Party (PP), led by Alberto Núñez Feijóo, confirmed it will vote against both measures, describing the package as a political trap. The parliamentary arithmetic leaves the minority government dependent on Basque and Catalan regional parties, specifically Junts and the Basque Nationalist Party (PNV), which together hold 12 seats in the Congress of Deputies.

Terms of the contested housing package

The first royal decree-law, published in the Official State Gazette (BOE), introduces restrictions on rent increases, allows extensions of current rental contracts for up to two years, and halts evictions of vulnerable tenants. The text also places restrictions on property acquisitions by investment funds when purchases fall below 70% of appraised market valuation. A separate second decree, which Moncloa unbundled to protect the broader package, requires property owners to pay up to 12 monthly rent installments to tenants if they refuse a contract extension. Conservative lawmakers and property associations argue the provisions burden private owners, pointing out that individual landlords control roughly 80% of Spain's residential rental market.

Grassroots mobilization and left-wing alignment

The government accelerated the decree-laws following public demonstrations ignited by the eviction of Maricarmen Abascal, an 87-year-old Madrid resident. Her case spurred renewed encampments in Madrid's Puerta del Sol plaza, referencing the 2011 15-M demonstrations. The Sindicato de Inquilinas, a tenant advocacy group with 10,000 members, called on parliamentary groups to back the decrees while organizing protests outside town halls across Spain on Thursday. Podemos, which had initially criticized the decision to split the legislation into two texts, adjusted its stance after consulting with tenant representatives. PP deputy Jaime de los Santos described how his retired parents face having their rent doubled when their lease expires.

Now their landlords, of course, their contract expires in April. What did they tell them? That they are going to double the price.

Regional parties hold the balance of power

With the PP voting against the measures alongside Vox, the government requires Junts or the PNV to back the first decree or abstain. Junts spokesperson Míriam Nogueras voiced disappointment after reviewing the legal text, noting concerns over property protections. Junts previously joined the PP and Vox in Congress to admit three alternative housing bills for debate, including provisions to eliminate government-designated stressed rental zones. The PNV has historically abstained on similar decree-laws, and government negotiators believe the first text addresses several regional priorities. The outcome of Friday's plenary session will determine whether the first package of tenant protections enters into force.