Pedro Sanchez is weighing up whether to call an early general election after Congress rejected both of his government’s emergency housing decrees.
Sources within Moncloa say no option is being ruled out following Friday’s double defeat, including dissolving Parliament and sending Spaniards back to the polls, reports Cadena Ser.
The prime minister is expected to assess the political fallout and the public response at housing demonstrations planned in more than 50 cities on Saturday before deciding his next move.
The first decree was defeated by 178 votes to 172, while the second fell by a wider margin of 184 to 166.
The PP, Vox and Catalan separatist party Junts opposed both texts, while the PNV and Coalicion Canaria also rejected the second.
Housing measures collapse
The first decree included extended protection from eviction for vulnerable residents, tighter regulation of temporary and room rentals, restrictions on purchases by speculative investment funds and tax changes affecting tourist accommodation.
The second would have introduced greater security for tenants, including automatic contract extensions and compensation when landlords refused to renew without a legally accepted reason.

Both decrees had entered into force after being published in the Official State Gazette but required approval by Congress to remain valid.
Their rejection means the measures now lapse.
Sanchez issues warning
Sanchez made an unexpected intervention shortly before the votes, personally urging the opposition and Junts to reconsider.
He acknowledged that the decrees would not solve Spain’s housing crisis on their own but insisted they would mitigate its effects for hundreds of thousands of people.
After failing to secure enough support, he warned those responsible: ‘History will judge you sooner than you think and with greater force than you imagine.’
Government sources accused the opposing parties of failing to appreciate the consequences of blocking measures aimed at tackling what they described as Spain’s most pressing problem.
Junts argued that the proposals would reduce the supply of rental properties, drive up prices and fail to protect vulnerable residents adequately.
Could Spain vote again this year?
Debate over an early election had already been growing inside the PSOE and among ministers before Friday’s vote.
Sources cited by Cadena SER said some government figures were strongly in favour of dissolving Parliament if the decrees failed, although Moncloa maintained before the vote that no decision had been taken.
If Sanchez moves quickly, November 29 has been identified as one possible polling date.
Spanish electoral law generally requires an election to take place 54 days after the dissolution decree is formally published, meaning the precise date would depend on when Sanchez initiated the process.
The prime minister could instead continue the legislature and attempt to negotiate revised housing measures.
