Spain’s government has failed to push through a key housing measure after Congress voted down a decree that would have extended rental contracts and capped rent increases.
The proposal, which had been in force for a month, was rejected on Tuesday with 177 votes against, 166 in favour and five abstentions.
The decree aimed to extend rental contracts by up to two years for agreements expiring between March 2026 and the end of 2027. It also proposed limiting annual rent increases to 2%.
But the plan collapsed after opposition from several parties. Junts, the Partido Popular and Vox all voted against, while the Basque Nationalist Party (PNV) chose to abstain.
Last-minute negotiations between the government and Junts failed to secure support, particularly after tensions rose over recent comments made by deputy prime minister Yolanda Diaz about the Catalan party.
Government vows to try again
Social Rights Minister Pablo Bustinduy defended the proposal as ‘reasonable’ and ‘common sense’, insisting the government will not back down.
‘We are not going to resign, we are not going to give up, and we will bring it back as many times as necessary until it becomes reality,’ he said. ‘Until the right to housing prevails.’
He did not confirm whether the decree will be reintroduced immediately or revised to win broader support.
Sharp criticism after the vote
Bustinduy also criticised the parties that opposed the measure, warning voters to remember their stance.
‘I ask tenants to remember, to see what each party does, and I hope they pay a high political price,’ he said.
He also accused opponents of siding with large investment funds over ordinary families.
‘Between a vulture fund and a Spanish family, which side did they choose today? The vulture fund, so they can continue making money from people’s effort and work.’
Uncertain future for renters
The rejection leaves uncertainty for tenants who were expecting longer contract protections and limits on rent increases.
The government now faces the challenge of either renegotiating the proposal or finding an alternative way to address Spain’s growing housing crisis.
