Spain’s coalition government has reached a last-minute agreement on a sweeping housing package that would extend protections against eviction until 2030 and automatically renew thousands of rental contracts.

The PSOE and Sumar have agreed to split the measures between two royal decree-laws in an attempt to secure enough votes for at least part of the package to survive Congress.

The proposals include tighter controls on temporary and room rentals, a temporary ban on investment funds purchasing residential property and two-year extensions for qualifying tenancy agreements.

It comes after nationwide protests against ‘abusive landlords’ and soaring rents on Monday night, following the highly controversial eviction of 87-year-old Maricarmen in Madrid.

The Government has requested an extraordinary parliamentary session this Friday so MPs can immediately vote on whether to validate the two decrees.

Until that vote takes place, the measures are not guaranteed to enter into force permanently.

What is included?

According to details released by Ministry of Housing sources, the package includes an extension of protections for vulnerable households facing eviction until 2030.

Rental agreements currently in force and due to expire before December 31, 2028, could be extended for a further two years.

The coalition has also agreed to introduce automatic renewal rules for rental contracts, although the precise conditions have not yet been published.

Temporary lets and room rentals would face tighter regulation following concerns that landlords are using these contracts to avoid the restrictions that apply to conventional long-term tenancies.

Another measure would prevent investment funds from buying homes until 2028.

The draft package also includes tax incentives for landlords who agree to reduce rents.

However, the Government has not yet confirmed which measures will appear in each decree or whether every proposal contained in the draft will remain in the final texts.

Why are there two decrees?

Splitting the package is a political calculation intended to improve its chances in Congress.

The minority coalition must secure support from parties with sharply differing positions on housing, ranging from Podemos to Junts and the PNV.

By presenting two separate decrees, the Government hopes that MPs can support some of the measures without having to accept the entire package.

The PSOE is seeking a minimum agreement capable of attracting all its parliamentary partners, including the more economically conservative PNV and Junts.

The strategy is also designed to avoid a repeat of the Government’s previous housing decree.

That package was approved by the Cabinet six months ago following pressure from Sumar, which initially described the measures as insufficiently ambitious.

But it was defeated a month later after failing to win enough support in Congress, meaning its measures ceased to apply.

The final wording of both decrees will determine exactly which tenants, landlords and properties are affected.

Even if approved by the Cabinet, royal decree-laws must be validated by Congress within 30 days or they lapse.

The Government wants MPs to vote this Friday because of what it described as the urgency of the housing measures.