Parliamentary Year Ends with No Progress on Housing Legislation
During the parliamentary session from September 2025 to July 2026, the Spanish Congress of Deputies failed to pass any decisive legislation on the housing crisis, a core social issue. According to ongoing surveys by the Centre for Sociological Research (CIS), housing remains the top concern for Spanish citizens. However, fierce partisan conflict within parliament led to the failure of most of the eight related legislative initiatives discussed this year, leaving no effective solutions in place.
Government’s Protective Measures Repeatedly Defeated
This session, three key decrees pushed by Spain’s central government were voted down in parliament, nullifying several measures intended to protect tenants and vulnerable families. A moratorium aimed at banning evictions of vulnerable families was submitted twice and rejected both times. Another more urgent measure, which mandated the extension of rental contracts until the end of 2027 and froze rent increases, was repealed just five weeks after taking effect due to joint opposition from the People’s Party (PP), Junts, and Vox.
Furthermore, a comprehensive new housing decree, scheduled for approval in July and including tax incentives for landlords, an increase in the VAT for tourist apartments to 21%, and amendments to the Land Law, was also postponed for debate until September after failing to secure support from Junts and Podemos.
Opposition Agenda Advances as Partisan Divide Deepens
Among the five legislative initiatives independently proposed by various parties, the government’s left-wing allies also faced setbacks. A bill from the Republican Left of Catalonia (ERC) to tax large property owners and restrict tourist apartments, and another from Sumar to ban corporations from purchasing residential properties, both failed to pass the initial hearing stage.
In contrast, the main opposition party, the People’s Party (PP), made progress on its core agenda. Two of its bills—one aimed at cracking down on illegal squatting and another designed to reform the Land Law and repeal the current Housing Law—successfully passed the initial hearing. Supported by Vox and with abstentions or support from the Basque Nationalist Party (PNV) and Junts, these proposals have now moved to the parliamentary amendment debate stage. This shift indicates that the legislative focus is moving from the government’s social protection agenda to the right-wing’s agenda of deregulation and strengthening property rights.
Fundamental Divides and Future Outlook
The current legislative stalemate is rooted in the fundamental ideological differences among the parties on housing. On one hand, the ruling coalition and left-wing parties favor direct interventions like price controls, extending rental contracts, and restricting evictions to protect tenants. On the other hand, right-wing and centrist forces, led by the People’s Party, advocate for stimulating market supply by increasing available land, streamlining development approvals, and combating illegal squatting to address the root cause of the problem.
As the new political year begins, the Spanish government’s primary challenge is to reach a compromise on the shelved housing decree with all parties before September. If the deadlock cannot be broken, the housing issue is expected to remain one of the most controversial and divisive topics in parliamentary debates over the coming year, while Spain’s housing crisis will likely continue to worsen.
