Spain’s housing market has once again become a flashpoint for political turmoil. On Friday, the lower house of parliament turned down two emergency decree‑laws that the Sánchez government had rushed through in an attempt to quell public anger after the eviction of 87‑year‑old Maricarmen Abascal. The defeats – 178‑172 on the first decree and 184‑166 on the second – underline the fragile position of Sánchez’s minority Socialist administration and raise fresh speculation about an early general election.
What the decrees sought to achieve
The two proposals were framed as a rapid response to a wave of protests that began after Abascal was forced out of her central‑Madrid flat when she could not afford a steep rent hike imposed by the landlord, Urbagestión. Both decrees contained a mix of tenant‑protection measures and market‑regulation ideas:
- First decree: suspension of evictions for vulnerable tenants until 2030, a two‑year extension for leases expiring before 2028, higher taxes on tourist apartments, and limits on purchases of residential property by so‑called “vulture funds”.
- Second decree: automatic renewal of rental contracts – a core demand of the Tenants’ Union (Sindicato de Inquilinas) and other left‑leaning groups.
Supporters argued these steps were necessary to inject order and humanity into a market they say has become a profit‑driven arena for speculation.
Why the government lost the vote
The Socialist Party does not hold a parliamentary majority, relying on smaller nationalist parties from Catalonia and the Basque Country to pass legislation. In the lead‑up to the vote, the pro‑independence coalition Together for Catalonia (JxCat) announced it would oppose both measures, citing concerns that the decrees were hastily drafted and would not curb speculation. The conservative People's Party (PP) and far‑right Vox also voted against the proposals, reinforcing the government’s minority status.
During the debate, Sánchez appealed to lawmakers, urging them to be “brave and consistent” and warning that inaction would “bring down our society”. Yet the opposition framed the decrees as ineffective, with JxCat’s Miriam Nogueras warning that they would merely enable “vulture funds” to continue buying and evicting tenants.
Public reaction and the broader housing crisis
The parliamentary showdown was mirrored by street protests. Hundreds of demonstrators gathered outside Congress, chanting “shame on you” and “your profits, our misery”. The eviction of Abascal sparked a nationwide movement demanding affordable rentals, leading to occupations of public squares, tent encampments, and scheduled marches across major cities.
In a notable development, Urbagestión negotiated a return for Abascal at a reduced rent, but activists from the Tenants’ Union announced they would shift their focus from a single tent protest in central Madrid to a broader, neighborhood‑by‑neighborhood campaign against rent hikes and evictions.
Political implications for Sánchez
The defeat deepens the pressure on Sánchez, whose government has already been beset by scandals and judicial investigations. With the next general election not due until next summer, the loss of these decrees fuels speculation that the prime minister may call a snap election to seek a stronger mandate. Sources close to the government indicated that Sánchez would spend the weekend weighing his options, including the possibility of dissolving parliament.
Opponents argue that the government’s interventionist approach could deter property owners from renting out homes, potentially worsening the shortage of affordable housing. PP spokesperson Juan Bravo summed up this view: “housing doesn’t get cheaper with decrees, it gets cheaper with more homes.”
What comes next?
While the immediate legislative push has stalled, the underlying issue – soaring rents and tenant insecurity – remains unresolved. The protests that erupted after Abascal’s eviction show that public demand for systemic reform is unlikely to fade. Whether Sánchez’s administration can craft a more politically palatable package, or whether a new election will reshape the balance of power, will determine the next chapter in Spain’s housing debate.
Key take‑aways:
- Both housing‑crisis decree‑laws were rejected by Parliament, marking a clear defeat for Prime Minister Pedro Sánchez.
- The vote followed the eviction of 87‑year‑old Maricarmen Abascal, which ignited nationwide protests demanding affordable rentals.
- Opposition parties argue the measures are insufficient and could discourage landlords, while supporters claim they are essential to protect vulnerable tenants.
- The outcome intensifies speculation about a possible early general election and underscores the political fragility of Sánchez’s minority government.