The Spanish government has postponed plans to freeze rents for two years after concluding it did not have enough parliamentary support to pass the legislation.
The proposed housing decree, which had been due to be approved by the Council of Ministers on Tuesday, has now been delayed until after the summer following opposition from both Junts and Podemos.
The government had hoped to extend rent freezes until June 30, 2028, while introducing a series of reforms aimed at strengthening tenant protections and boosting the supply of affordable housing.
However, the Catalan party Junts made clear it would not back the decree, arguing that several measures failed to protect small landlords and did too little to tackle illegal occupation.
The party also criticised what it sees as government housing policies that have reduced rental supply while pushing up prices.
In a statement published on Monday, Junts spokesperson Miriam Nogueras said: ‘There are not enough homes, and the limited supply that remains disappears within hours.
‘It is the result of years of policies that have achieved the opposite of what they promised.’
She added that rent caps may appear to offer a quick solution, ‘but they do not build a single new home.’
The government also faced resistance from Podemos, which accused ministers of attempting to use the housing decree to introduce changes to Spain’s Land Law.
Temporary rental reforms delayed
Among the most significant proposals now on hold is a new legal framework for temporary rental contracts.
Under the draft legislation, temporary lets would have been limited to between 31 days and 12 months, with landlords required to provide a valid reason for using this type of contract.
If more than two temporary contracts were signed between the same landlord and tenant, or if the tenancy exceeded one year, it would automatically be converted into a standard residential lease with full legal protections.
The draft also proposed tighter rent controls in designated high-pressure housing areas.
Under those rules, landlords would not have been allowed to charge more than the rent agreed in the previous contract signed within the last five years, except where substantial renovations, energy efficiency improvements, accessibility works or long-term leases justified an increase of up to 10%.
Large property owners would also have been required to comply with Spain’s official rental reference price index.
More time for negotiations
The Ministry of Housing insisted the delay does not mean the proposals have been abandoned.
In a statement, it said there was still scope to reach a ‘broad and cross-party agreement’ on an ambitious package of housing reforms but acknowledged that the complexity of the legislation meant more time was needed to negotiate.
The government said this week’s final Cabinet meeting before the summer recess would instead focus on measures to combat the growing wildfire emergency.
Housing officials said they remain committed to reaching an agreement that both protects tenants and increases the supply of affordable homes when negotiations resume after the parliamentary break.
