Spanish Housing Decrees Face Defeat as Protesters March on Parliament

Key Points

• Spain’s Congress is due to vote on two emergency housing decrees introduced by Pedro Sánchez’s government amid a nationwide affordability crisis.
• Catalan separatist party Junts has said it will vote against both measures, while the Popular Party and Vox are also opposed, leaving the decrees facing defeat.
• The government’s first decree seeks stronger protections for vulnerable tenants, tighter rules on short-term rentals, measures against property speculation and incentives for additional housing.
• A second decree would allow rental agreements to renew automatically and potentially indefinitely, with landlords required to pay compensation equivalent to 12 months’ rent to terminate certain contracts.
• The measures followed public anger over the eviction of 87-year-old Maricarmen Abascal from her Madrid home on 23 September.
• Abascal has since been offered a route back to her home after intense public and political pressure, while she remains in hospital following the eviction.
• Housing campaigners have continued demonstrations and encampments, including at Madrid’s Puerta del Sol, demanding stronger tenant protections.
• Reuters reported that Junts believes several measures could reduce rental supply and increase prices, while the Spanish government argues the package incorporates most of the party’s proposals.
• The dispute has also generated speculation in Spanish media about whether Sánchez could consider an early general election, although no decision had been announced by the government.

Madrid Journals (MJ) October 2, 2026 – Spain’s government is facing a significant parliamentary setback over emergency housing measures as lawmakers consider two decrees designed to address rising rents, evictions and shortages of affordable accommodation. The likely rejection comes as protesters gather outside Parliament demanding stronger protections for renters following the eviction of 87-year-old Maricarmen Abascal. The Catalan separatist party Junts, whose support is essential to the government’s parliamentary arithmetic, has announced that it will vote against the measures. The Popular Party and Vox are also opposed, leaving the decrees with insufficient support unless there is an unexpected change before the votes.

Why are Spain’s emergency housing decrees facing defeat?

According to Joseph Wilson of The Associated Press, Junts announced on Friday morning that it would reject the two government decrees. The party’s position came after negotiations with the government failed to produce an agreement acceptable to its parliamentary group.

Reuters correspondent David Latona reported on October 1 that the prospects for the principal housing decree had deteriorated after Junts raised last-minute objections and asked the government to prepare a new proposal. Reuters reported that Junts has seven MPs and that Sánchez’s government holds only 147 seats in the 350-member Congress, meaning it depends on smaller parties to secure parliamentary majorities.

The parliamentary arithmetic therefore makes Junts particularly important. The government does not have enough seats to approve the measures without support or abstention from parties outside its core governing bloc.

Wilson reported for AP that the expected opposition from Junts, combined with opposition from the centre-right Popular Party and Vox, appeared sufficient to doom the measures.

The dispute is taking place against a backdrop of growing public pressure over housing costs. Demonstrators have been occupying public spaces and organising protests in several Spanish cities after Abascal’s eviction became a focal point for wider concerns about rents and tenant security.

What do the proposed housing decrees contain?

The first decree contains several measures intended to provide additional protection for vulnerable renters while increasing regulation of the housing market.

According to Wilson’s AP report, the package includes measures intended to prevent evictions involving vulnerable people, restrict aspects of short-term rental activity, make property speculation more difficult and introduce tax incentives designed to encourage renting and housing construction.

Reuters’ David Latona reported that the package under discussion included extending protections against evictions of vulnerable tenants until 2030, extending a two-year rent freeze for existing leases and imposing tighter rules on short-term rentals.

The government has also proposed measures aimed at increasing the availability of housing. Earlier reporting by The Guardian said the package included restrictions on so-called vulture funds buying property until 2028 and a two-year extension for existing rental agreements that would otherwise expire at the end of 2028.

The precise combination of measures has become part of the political dispute because different parties disagree over whether stronger tenant protections would improve access to housing or discourage owners from putting properties on the rental market.

A second decree is particularly controversial because it concerns the duration of rental contracts.

How would automatic rental renewals affect landlords and tenants?

The second decree would allow rental contracts to renew automatically when they reach their expiry date, effectively providing tenants with much greater security of tenure.

Under the proposal described by AP, the arrangement could make rental agreements effectively indefinite. A property owner seeking to end the contract would have to pay compensation equivalent to 12 months of rent.

Reuters reported separately that the government’s package also included provisions designed to strengthen protections for existing tenants. Junts has argued that such restrictions could have the opposite effect from the government’s intention by encouraging landlords to withdraw properties from the rental market.

This disagreement reflects a central divide in the housing debate. The government has presented tenant protection and restrictions on evictions as responses to rising housing insecurity. Junts has argued that stronger restrictions could reduce the number of properties available for rent.

Neither interpretation should be treated as an established outcome of the legislation because the proposed measures had not been implemented when the parliamentary vote was taking place.

Why has Maricarmen Abascal’s eviction become central to the housing debate?

The immediate political pressure surrounding the decrees intensified after Abascal, aged 87, was evicted from her Madrid home on September 23.

According to previous reporting by Joseph Wilson for AP, Abascal had lived in the property for around seven decades. Her eviction became a catalyst for protests in Madrid and other Spanish cities, with campaigners using her case to highlight wider concerns about rental costs and protections for long-term tenants.

AP reported that Abascal was removed from the property on a stretcher and subsequently remained in hospital. Her lawyer said she was pleased after the company involved in the eviction agreed that she could return home.

Earlier AP reporting provided additional context on the dispute. According to the report, Abascal’s family had rented the property since the 1950s. The building changed ownership in 2018, and the investment fund associated with the property later increased the monthly rent substantially. AP reported that the rent was raised from €500 to €2,650 and later reduced to €1,650, which remained beyond what Abascal could afford on her pension.

The company involved did not respond to AP’s requests for comment at the time of that report.

The case subsequently became a prominent symbol within the housing demonstrations, although the dispute is part of a much wider housing affordability problem affecting tenants across Spain.

How much have rents increased in Spain?

The housing dispute is taking place after a prolonged increase in rental costs.

According to the Idealista figures cited by Joseph Wilson for AP, the average rent in Spain has almost doubled over the past decade. The average price per square metre increased from €8.20 in 2016 to €15.10 in 2026.

Those figures help explain why housing has become a prominent political issue, particularly in large cities and areas where demand for rental accommodation is high.

Earlier AP reporting by Wilson described the housing crisis as a broader problem involving people who are unable to buy homes while also facing pressure in a relatively constrained rental market.

The issue has also extended beyond Madrid. AP reporting has described smaller encampments and demonstrations in cities including Seville, Málaga, Santiago de Compostela and Palma de Mallorca.

Spain already has housing legislation dating from 2023 that regulates some rents and provides a framework allowing rent caps in high-demand areas when requested by local authorities. The current emergency measures were intended to add further protections and address issues that the government considers urgent.

Why did Junts reject the government’s housing package?

Junts says the proposed measures could reduce the supply of rental homes.

Reuters reported that the party argued the measures could make the housing situation worse by discouraging owners from offering properties for rent. In a statement reported by Latona, Junts said that measures intended to help tenants could reduce rental supply, push prices higher and make housing less accessible to people with limited financial resources.

AP reported that Junts spokesperson Míriam Nogueras similarly argued that owners could remove properties from the rental market because of the proposed restrictions. She also criticised the decrees for continuing to allow what she described as property speculation and evictions.

Nogueras’ position represents the party’s stated policy objection to the measures rather than an independently established assessment of their eventual economic effect.

The government has rejected Junts’ position and has continued to defend the decrees.

What did Spain’s housing minister say to Junts?

Housing Minister Isabel Rodríguez made a final appeal to Junts during the parliamentary debate.

According to Joseph Wilson’s AP report, Rodríguez said the ministry had incorporated 90% of Junts’ proposals and asked the party either to support the decrees or abstain.

The government had previously sought negotiations with Junts because its support was necessary for parliamentary approval.

However, Nogueras maintained that the legislation remained unacceptable. Junts also called for further amendments.

Reuters reported that the party had asked the government to prepare a new proposal, arguing that the existing measures could damage the supply of rental properties.

The disagreement illustrates the difficulty faced by Sánchez’s minority government in passing legislation when it depends on several smaller parties with different priorities.

What role do the Popular Party and Vox play in the vote?

The Popular Party and Vox are also opposed to the government’s emergency housing package.

According to AP’s Joseph Wilson, Junts’ decision to vote against the decrees, combined with the opposition of the Popular Party and Vox, left the measures facing defeat.

The parliamentary situation is significant because the government does not command a majority in Congress.

Reuters reported that Sánchez’s government has 147 seats in the 350-seat chamber and relies on support from a collection of smaller parties to pass legislation.

That dependence has previously required negotiations on individual measures, and the housing package has demonstrated how difficult it can be to maintain support when parties disagree about the likely consequences of regulation.

What are protesters demanding outside Parliament?

Protesters gathered outside Parliament on Friday as lawmakers debated the decrees.

AP reported that demonstrators held handmade signs featuring images of vultures as they criticised property speculators whom they blame for rising housing costs.

One protester, Carla Cremonte, a 34-year-old office worker, told AP that she believed right-wing parties were voting against the interests of workers and other people taking part in the demonstrations.

Cremonte also said she did not know whether elections might be called but that protesters would continue demonstrating and that the atmosphere reminded her of a potential general strike. Her comments represent the views of an individual protester and not an official position of the wider movement.

Reuters separately reported that thousands of mainly young activists had camped in Madrid’s main square and in other Spanish cities following Abascal’s eviction.

The demonstrations have therefore developed alongside the parliamentary process, placing pressure on lawmakers while the government seeks approval for its emergency measures.

Could the parliamentary defeat lead to an early Spanish election?

The likely rejection of the housing decrees has prompted speculation in Spanish media about the possibility of an early election.

According to AP’s Joseph Wilson, the expected defeat has raised questions about whether Prime Minister Pedro Sánchez might bring forward elections that are otherwise expected next year. Sánchez did not comment when he arrived at Parliament, and his office had not immediately responded to AP questions about the possibility of a snap election.

At the time of the report, there was therefore no confirmed government decision to call an early election.

The parliamentary defeat would nevertheless demonstrate the difficulties faced by a minority government attempting to pass legislation on an issue that has become a major source of public concern.

The housing dispute also illustrates the wider challenge of balancing tenant protections, rental supply, property rights and the need for additional housing construction.

What happened to Abascal after the eviction?

The immediate dispute involving Abascal has moved towards a resolution separate from the parliamentary vote.

AP reported that the company responsible for the eviction agreed that she could return to the apartment following substantial public and political pressure. At the time of the parliamentary proceedings, she remained in hospital after being removed from her home on a stretcher. Her lawyer said she was happy to know she would be able to return.

Earlier reporting by The Guardian said Urbagestión had agreed that Abascal’s rent would not exceed 30% of her income. The Guardian reported that this amounted to €533 a month under the agreement, compared with the previously demanded €1,650.

The development has provided a temporary resolution for Abascal, but it has not addressed the wider issues raised by housing campaigners.

Those campaigners are continuing to press for legislative changes covering evictions, rental costs, housing supply and the role of investment funds.

What does the dispute mean for Spain’s housing policy?

The parliamentary confrontation leaves the government facing questions about how it can advance housing reforms if the current decrees fail.

The government’s approach focuses on stronger tenant safeguards, restrictions on some forms of rental activity, measures targeting property speculation and incentives intended to expand the housing supply. Junts, meanwhile, has argued that some of those restrictions could reduce supply and increase rents.

These are competing policy positions rather than established conclusions about the effects of the proposed laws.

The immediate consequence of the vote is more certain: if the decrees are rejected, the measures in their current form will not receive parliamentary ratification through this process.

That would leave the government needing to consider alternative legislative or negotiating routes if it wants to pursue similar protections.

The protests mean that housing policy is no longer confined to parliamentary negotiations. The issue has become a prominent public debate involving tenants, property owners, housing campaigners, political parties and the national government.

What is the background to Spain’s housing crisis?

Spain’s current housing dispute follows years of pressure on both rents and house prices.

The 2023 housing law introduced a framework for regulating rents and allowing rent limits in certain high-demand areas, but the government has continued to face demands for additional action as housing costs have risen.

The eviction of Abascal brought those broader concerns into sharper public focus because of her age, the length of time she had lived in the property and the circumstances surrounding the rent dispute.

AP’s earlier reporting said her family had rented the Madrid property since 1956. The building changed ownership in 2018, after which the rent arrangement became the subject of a prolonged dispute.

The government subsequently approved the emergency decrees following the public reaction. The Guardian reported that the cabinet approved measures including extended protections for vulnerable tenants, regulation of temporary and room rentals and restrictions concerning speculative property purchases.

The measures still required approval in Congress because Sánchez’s governing coalition does not hold a parliamentary majority.

The result has been a direct link between a highly visible individual eviction, nationwide housing protests and a parliamentary confrontation over the direction of housing policy.

How could the development affect renters and the Spanish housing market?

For renters, the immediate effect of the expected defeat is that the proposed emergency protections would not take effect through these decrees unless the government finds another route to implement comparable measures.

The practical impact would depend on what alternative legislation or agreements are subsequently pursued.

For landlords, the dispute centres on whether stronger tenant protections could affect decisions about offering properties for rent. Junts has explicitly argued that restrictions could discourage supply and contribute to higher prices.

For the government, the episode creates a parliamentary challenge as it attempts to respond to rising housing costs while relying on parties with competing policy priorities.

For protesters, the parliamentary defeat could become a further focus of demonstrations, particularly because campaigners had linked their demands to the government’s response to Abascal’s eviction.

The wider housing market is likely to remain dependent on factors beyond these decrees, including the supply of homes, rental demand, construction, local housing regulations and broader economic conditions.

What is the outlook for Spain’s housing policy?

The immediate outlook is centred on the parliamentary rejection of the two decrees and the government’s response afterwards. AP reported that the expected defeat could increase political pressure on Sánchez, while Reuters reported that Junts had called for the government to reconsider its proposal.

The development does not establish that an early election will take place. Nor does it establish that either side’s assessment of the housing measures would ultimately prove correct.

What is clear is that Spain’s housing debate has entered a more politically difficult phase. The government is seeking stronger tenant protections while Junts and other opposition parties dispute the likely effects of those measures on rental supply and prices.

For renters, the key issue will be whether alternative measures emerge after the parliamentary vote and whether they provide protection against eviction and rising housing costs.

For landlords and property investors, the important consideration will be whether future legislation changes rental-contract rules, restrictions on property transactions or incentives for supplying homes.

For policymakers, the continuing challenge is to address affordability while considering the potential effects of regulation on housing availability.

The protests, parliamentary vote and Abascal case have therefore brought several longstanding housing questions together in a single national debate. The next stage will depend on the government’s legislative strategy, negotiations with parliamentary parties and the response of housing campaigners and the rental market.