Cabinet approves two housing decrees after Madrid eviction, but faces uncertain vote in Congress

The measures include an extension until 2030 of protection against eviction for people in vulnerable circumstances, a two-year extension for certain rental contracts, tighter rules for seasonal and room rentals, and restrictions on property purchases by so-called ‘vulture funds’ until 2028. A separate decree addresses the automatic renewal of rental contracts. ALSO READ: Spanish government pushes for new housing decree after eviction of 87-year-old Maricarmen.

None of the measures is assured of surviving a parliamentary vote. The government has requested an extraordinary session of Congress this Friday 2 October to seek approval for both decrees, but Junts per Catalunya (JxCat) and Podemos have raised objections and have not confirmed how they will vote.

The cabinet meeting began an hour late on Tuesday as the coalition partners finalised their agreement. Sumar ministers and their socialist colleagues subsequently held separate appearances to explain the package, reflecting the differences that had persisted between them until the last moment.

The immediate backdrop is the eviction of Maricarmen Abascal, who had lived in her Madrid home for more than 70 years. Housing campaigners supported her through three previous attempts to remove her and have since joined protests in Puerta del Sol, where demonstrators are demanding stronger measures to contain housing costs. ALSO READ: Protesters vow to stay in Madrid’s Puerta del Sol as housing camp puts pressure on government. 

‘The eviction has been a collective failure, but Congress has a unique opportunity to tell her that her suffering has been worthwhile and that it will help prevent other people from going through the same thing,’ Spain’s Housing Minister Isabel Rodríguez said. She called on parliamentary groups to show ‘responsibility’ when the decrees come to a vote.

What the government has agreed

The first decree brings together most of the proposals on tenant protection and the rental market. Alongside extending protection from eviction until 2030, it provides for a two-year extension of contracts already in force that are due to expire before 31 December 2028.

It would also regulate seasonal lets and individual room rentals, which have become a focus of concern over the use of shorter contracts in the housing market. The precise terms of the new rules will need to be assessed from the decrees themselves. The government had previously proposed treating room rentals broadly like ordinary residential lets, including limits on the combined rent charged for rooms in one property.

Another provision would restrict purchases of housing by investment funds until 2028. The package also includes a penalty regime aimed at illegal tourist accommodation operating without the required licence, together with tax incentives concerning tenants and landlords with a small number of properties. Full details of the scope and eligibility of those measures were not clear from Tuesday’s announcements.

Automatic renewal of rental contracts has been placed in the second decree. That division is politically significant: it allows MPs to vote separately on a measure that appears to face greater resistance, without necessarily bringing down the wider housing package.

Rodríguez nevertheless urged Congress to approve both texts. ‘I am asking for a vote in favour of both royal decrees,’ she said. She acknowledged that automatic renewals had been discussed less extensively with parliamentary groups, but argued that there was still time to secure support.

The coalition has left out a proposal for indefinite rental contracts. Sumar sources described the agreed package as the most ambitious one for which the government could seek parliamentary backing, while accepting that indefinite contracts would not have the votes needed to pass.

Junts seeks protection for small landlords

Whether the first decree can win approval may depend on JxCat, which says it needs to read the final texts before deciding its position. The Catalan pro-independence party has long opposed automatic rental renewals and is also pressing for stronger safeguards for small property owners.

JxCat spokesperson Miriam Nogueras argued that a landlord with a couple of properties should not be treated in the same way as a large owner. ‘Having two properties is not the same as owning an entire building,’ she said. In cases where a vulnerable tenant cannot pay rent, JxCat wants the public administration to assume the cost rather than leaving it with a small landlord.

Nogueras accused Sumar of resisting that protection, although she said JxCat was keeping the door open to an agreement. The party has also put forward proposals to reduce the tax burden on rents and mortgages and to lower VAT on housing construction.

Rodríguez appealed to JxCat and other parties that have supported the government, saying the housing problem affects Catalans as well as people elsewhere in Spain. The Basque Nationalist Party (EAJ-PNV) has likewise said it will announce its position after examining the wording of both decrees.

Podemos objects to the split

Podemos has approached the deal from the opposite direction. Its leader, Ione Belarra, called the two-decree approach ‘a trap’ and demanded that all the measures be presented together. ‘Divide and conquer will not work,’ she said, without revealing how the party would vote on Friday.

The tenants’ union that supported Maricarmen has also criticised the separation. Its spokesperson, Alicia del Río, argued that dividing the package could leave only fragments of the promised reform in place if one decree passes and the other fails.

The government rejects the suggestion that the second decree has been sacrificed. Rodríguez said both deserve approval, while government sources maintained that separating automatic renewals gives that proposal its own route through Congress.

PP and Vox reject the package

The main opposition parties are unlikely to provide the votes the government needs. The right-wing People’s Party (PP) leader Alberto Núñez Feijóo argued that ‘eight years of misguided housing policy’ could not be remedied by a decree. The PP’s spokesperson in Congress, Ester Muñoz, said the proposals would further damage the housing market.

The far-right Vox party also criticised the government for attempting to address through decrees problems it says the coalition has failed to solve during its years in office.

Rodríguez directed part of her response to PP voters, arguing that an eviction or the purchase of a building by an investment fund affects residents regardless of their political views. Social Rights Minister Pablo Bustinduy said each party was responsible for its own vote, but warned that blocking measures intended to help working people would be difficult to justify.

The government has chosen to bring the decrees to Congress quickly, although it has up to a month to seek their approval. Friday’s vote will show whether the urgency generated by Maricarmen’s eviction can bridge the differences between parties that disagree both on how far tenant protections should go and on who should bear their costs. ALSO READ: 87-year-old woman evicted from Madrid home after 70 years despite mass protests and offer to pay her rent.