Spain's Congress of Deputies on Friday, Oct. 2, rejected two government decrees intended to address housing shortages and rental price increases. The defeat for Prime Minister Pedro Sánchez's minority government occurred amid nationwide protests and has led to internal discussions regarding whether to call an early general election.
The emergency measures were drafted following the eviction of 87-year-old Maricarmen Abascal from her Madrid apartment on Sept. 23. Abascal was removed after she could not pay a rent increase introduced by the company that owned the flat, Urbagestión. While she was later permitted to return under a low-rent agreement, her case sparked protests in several cities, including tent occupations in public squares and a march in Barcelona.
Lawmakers rejected the first decree by a vote of 178 to 172. This measure included a suspension of evictions for vulnerable tenants through 2030, tax increases on tourist apartments, and restrictions on residential property purchases by investment firms characterized by the government as "vulture funds." The second decree, which included the automatic renewal of rental contracts, failed by a margin of 184 to 166. The conservative People’s Party (PP) and Vox opposed the intervention, arguing it would frighten homeowners and reduce the supply of rental homes. Together for Catalonia (JxCat) also voted against the decrees, stating they lacked rigour and would be ineffective.
The rejection of these decrees affects renters and property owners across Spain by vacating emergency protections that had been temporarily in place. Specifically, the decision impacts vulnerable tenants who would have been protected from eviction through 2030, as well as renters whose leases were set to expire before 2028 and would have received a two-year extension. Without these measures, tenants remain subject to existing lease terms and market conditions.
The scale of the political impact is reflected in the 178-184 votes against the government, demonstrating that Prime Minister Sánchez lacks a congressional majority. The failure to pass these measures follows a period of rising rental costs that triggered protests involving hundreds of demonstrators outside parliament and at Sant Jaume Square in Barcelona.
The knock-on effects include a potential shift in national governance, as Spanish media reports the government is considering dissolving parliament and calling a snap election before the scheduled date in summer 2027. The Tenants' Union has stated it will transition from tent protests to permanent local organization in Madrid neighborhoods to continue opposing rent increases and expulsions. Following the votes on Oct. 2, sources told Spanish media the government would spend the weekend determining its next steps. Further protest marches are scheduled to take place across the country on Oct. 3 and 4.