Spain’s Congress of Deputies rejected two housing royal decree-laws on 2 October, only days after they had been approved by the government. The first proposal received 172 votes in favour and 178 against, while the second was defeated by 166 votes to 184.
As a result, the changes included in the two texts will not become part of Spanish law in the form proposed by the government.
What was included in the first housing decree?
The first decree brought together a broad package of measures affecting tenants, landlords and property buyers.
Among other provisions, it sought to extend protection against eviction for vulnerable households where no alternative accommodation was available, introduce additional extensions for certain rental agreements approaching expiry and restrict rent increases in specific circumstances.
The package also aimed to tighten the regulation of seasonal rentals and room-by-room letting, two segments that have become increasingly important in the Spanish housing market.
It additionally contained tax incentives for landlords and tenants, alongside measures intended to facilitate access to a first home and increase the supply of affordable housing.
Following the vote in Congress, these measures will not take effect under this decree.
Automatic extensions of rental contracts were also rejected
The second decree focused primarily on the duration and renewal of residential rental contracts.
The government proposed strengthening tenants’ ability to remain in a property once the statutory minimum term of the contract had expired. This became one of the most controversial elements of the reform.
The proposal was ultimately rejected, with 166 MPs voting in favour and 184 against.
For landlords and tenants, this means the new extension mechanism proposed in the decree will not be introduced for now. The rules that were already in force before these temporary measures continue to apply.
More information about property rental services in Spain is available on the Alegria website.
What does this mean for Spain’s property market?
The rejection of the decrees does not repeal Spain’s existing Housing Law or the provisions already in force under the Urban Leasing Act (LAU). The vote concerned additional measures that the government was seeking to introduce.
Landlords, buyers and tenants should therefore distinguish between existing legislation and the new provisions contained in the rejected decrees.
Housing nevertheless remains one of Spain’s most pressing policy issues. High purchase and rental prices, limited supply in major cities and tourist areas, the regulation of temporary rentals and access to home ownership for younger households remain at the centre of political negotiations.
The government or parliamentary groups may present new proposals, including individual measures taken from the rejected decrees, but these would require fresh parliamentary approval.
Could the vote lead to an early general election?
Following the defeat of both decrees, speculation about a possible early general election has intensified in the Spanish media.
The issue goes beyond housing policy: the votes have once again highlighted how difficult it is for the government to assemble a stable parliamentary majority for major legislation.
As of 2 October, however, no official decision has been announced to dissolve Parliament or call an early election. For the moment, it remains a political possibility rather than a formally announced election.
