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Spain: Sánchez introduces new measures to tackle the housing crisis – what’s changing for rents and evictions

Following the eviction of a pensioner, hundreds of people have set up camp in Puerta del Sol. The government has approved two decrees to protect tenants, whilst the housing shortfall is set to exceed one million homes by 2028

by Angelica Migliorisi

29 September 2026

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Una persona si veste tra le tende di un accampamento di protesta per il diritto alla casa a Puerta del Sol, a Madrid, in Spagna, il 29 settembre 2026. L'accampamento è stato allestito nella tarda serata del 26 settembre a seguito di una manifestazione contro lo sfratto dell'ottantasettenne Maricarmen Abascal, che viveva nella sua casa in affitto da oltre 70 anni; i manifestanti hanno chiesto l'adozione di misure per affrontare la crisi abitativa in Spagna. EPA/SERGIO PEREZ EPA

5' min read

Translated by AI

Versione italiana

Key points

From tenancy agreements to evictions: what the new decrees entail
The 2023 law and the crackdown on short-term lettings
The issue of missing homes and the 7-billion plan

5' min read

Translated by AI

Versione italiana

At Puerta del Sol, in the centre of Madrid, people have been sleeping in tents for four days. The protest against the high cost of housing, which has led hundreds of people to set up camp in the square that symbolised the Indignados movement of 2011, began with the eviction of an 87-year-old pensioner and, within a matter of days, has grown into a national movement. María del Carmen Abascal, known to everyone as Maricarmen, was carried out on a stretcher from the flat where she had lived for over seventy years, after the new landlord had demanded an increase in the rent from 500 to 2,650 euros a month. The protest soon spread to other cities, increasing the pressure on the government of Pedro Sánchez, which is grappling with a housing crisis that the measures taken so far have failed to stem.

The government’s response came today, 29 September, with the Council of Ministers’ approval of two housing decrees, following negotiations between the Socialists and Sumar that continued right up to the last minute. The government is aiming for a vote as early as Friday, but parliamentary support is not yet guaranteed.

Madrid, protesta per crisi abitativa: in centinaia trascorrono la notte in tenda a Puerta del Sol

From tenancy agreements to evictions: what do the new decrees entail?

The first measure introduces an exceptional two-year extension for existing tenancy agreements due to expire by 31 December 2028, allowing tenants to retain their current contractual terms for a longer period. It also extends, until 2030, the protection against eviction for vulnerable households without alternative accommodation, a measure that has been contested, particularly due to its potential impact on small landlords.

The government is also taking action on short-term lets and individual room rentals , which, according to tenants’ associations, are often used to circumvent the protections in place for standard residential tenancies. There are also plans to tighten the rules on property purchases by so-called ‘vulture funds’, to combat speculative transactions until 2028. The criteria for identifying the companies concerned have yet to be defined.

The second decree, however, included the most sensitive measure: the automatic renewal of tenancy agreements, called for by the Sindicato de Inquilinas, one of the organisers of the camp in Madrid. The decision to split the two decrees stems from differences within the majority and an attempt to secure the necessary votes in Parliament. Junts, the Catalan pro-independence party whose support could prove decisive, has expressed reservations about the package, calling for a distinction to be made between large property developers and small landlords. The tenants’ union, by contrast, has criticised the decision to split the decrees, fearing that the most far-reaching measure may be rejected.

The package also includes interest-free loans for the purchase of a first home, covering up to 20 per cent of the price and up to a maximum of 50,000 euros, intended for those who have difficulty covering the initial costs. Tax relief has also been announced for certain categories of tenants and landlords, the eligibility criteria for which will be set out in the final legislation.

The 2023 Act and the crackdown on short-term lettings

The Sánchez government had already intervened in the property market in 2023, with the Ley por el Derecho a la Vivienda, which introduced rent caps in so-called ‘zonas tensionadas’, areas where housing costs place the greatest strain on household incomes or where prices have risen above certain thresholds. Here, new rents are generally capped at the levels of previous tenancy agreements, whilst a system of public indices also applies to large-scale landlords. The law also provides tax incentives for those who reduce their rents, with a rent reduction of at least 5 per cent which, under the conditions laid down by the legislation, may entitle the landlord to a tax deduction of up to 90 per cent of the net rental income.

However, the legislation is not applied in the same way throughout Spain. It is, in fact, up to the autonomous communities – which have extensive powers in the field of housing – to implement rent caps in areas identified as being the most problematic.

Short-term lets are also under scrutiny, as they reduce the availability of housing for residents, particularly in tourist towns. From 1 July 2025, a unique identification code will be mandatory when advertising a property intended for short-term lets on digital platforms; this has been introduced to facilitate checks and combat irregular activities.

The issue of missing homes and the 7 billion plan

The main factor weighing on the Spanish property market is the housing shortage . On 23 September, the Deputy Governor of the Bank of Spain, Soledad Núñez, updated the estimates of national housing needs: there is a shortfall of around 750,000–755,000 homes, a deficit that could rise by a further 300,000 units by 2028, thus exceeding one million.

This imbalance dates back to the 2008 property crisis, following which the construction sector has been unable to keep pace with the formation of new households. Meanwhile, population growth and demand concentrated in major urban areas have helped to drive prices up further. Núñez pointed out that since 1980, the real disposable income of Spanish households has increased 1.8-fold, compared with a 3.5-fold rise in real house prices. In the eurozone, over the same period, the two figures rose by 1.6 and 1.8 times respectively. In short, in Spain, buying a home has become progressively more expensive relative to incomes, especially for young people.

In April, the government approved the National Housing Plan 2026–2030, with a budget of 7 billion euros over five years – more than triple that of the previous programme. Sixty per cent of the funding comes from central government, with the remaining 40 per cent from the autonomous communities. At least 40 per cent of the funds will be used to increase the number of public, social and affordable homes, including through the purchase of existing properties. A further 30 per cent is earmarked for building refurbishment, accessibility improvements, urban and rural regeneration, and land development. The remaining 30 per cent will fund support measures to reduce the burden of housing costs on household incomes and promote the independence of young people.

For social or supported housing funded by the new resources, there is also a permanent use restriction, to prevent such properties from subsequently being removed from the stock of affordable housing. However, the implementation of the plan will also depend on the regional authorities and on the construction sector’s ability to speed up the building of new homes.

The challenge remains of reconciling tenants’ immediate demands with the time needed to increase the housing supply. Contract extensions and protections against evictions may provide greater stability for those who already rent, but they do not solve the housing shortage. The People’s Party also disputes the government’s strategy, arguing that further restrictions risk discouraging landlords and reducing the housing supply. Sánchez must also reach an agreement with Junts, which is calling for greater safeguards for small-scale landlords.

Meanwhile, an agreement has been reached regarding Maricarmen. The pensioner has accepted the offer to move back into the flat under a new tenancy agreement at 533 euros a month, a sum that does not exceed 30 per cent of her income. However, the Sindicato de Inquilinas has announced that the camp at Puerta del Sol will continue.