Spanish deputies approved a housing law aimed at solving Spain’s endemic housing crisis and limiting rental prices. The text, presented by the left-wing government, received 175 votes in favor, 167 against, and one abstention, so it will now go to the Senate for final ratification. The government of socialist Pedro Sánchez is seeking for the law to enter into force before the local and regional elections on May 28. The text provides for decoupling rent increases from the consumer price index and capping it at 3% in 2024 before setting a new index for 2025. In addition, the law penalizes landlords who leave several properties empty, extends the freeze on evictions for vulnerable tenants, and makes it compulsory to inform those threatened with eviction of the exact date and time at which they must vacate the property.
The tourism employers’ association Exceltur has warned that the cap on rents could turn tenants against landlords by pushing landlords to rent for short periods on tourist platforms such as Airbnb to evade the restrictions. Sociologist Jesús Leal has stated that “the only way out of the housing crisis is a very strong public investment in social housing” and that the text should focus on “housing whose rent is independent of the market.”
Pedro Sánchez has admitted that the law “is not enough” to solve the crisis and has announced the offer of 113,000 new social housing units, mainly through properties in the hands of Sareb, a public bank in charge of reselling “toxic” real estate assets after the financial crisis. Sánchez’s announcements were criticized by the Popular Party (PP, right), the main opposition party, which considers that they will not solve the problem in the long term. Instead, the law, in his opinion, will be “a fantastic opportunity for squatters,” as it “makes it more difficult and slows down” the eviction of squatters.