Spain’s Government Takes Action Amid Housing Crisis Protests

The Spanish government has enacted urgent measures to tackle the ongoing housing crisis following significant protests in Barcelona, where large crowds gathered in anger over the issue.

These protests first ignited on September 23rd when María del Carmen Abascal, an 87-year-old woman, was evicted from her home in Madrid, where she had lived for 70 years. Her eviction, prompted by soaring rents, struck a chord across the nation, turning her into a symbolic figure of the current housing struggles. Interestingly, public outcry led to a quick resolution, allowing her to move back just days later.

Yet, the outrage surrounding Spain’s housing situation has persisted, prompting Prime Minister Pedro Sánchez’s administration to propose emergency decrees aimed at curbing high rents and preventing further evictions.

However, without a parliamentary majority, Sánchez’s leftist coalition faced a significant setback when conservative opposition parties banded together to dismiss his housing initiative. They contended that stringent government actions—like long-term eviction bans and rent controls—would ultimately lead to a decrease in available rental properties, dissuade homeowners from renting, and exacerbate the housing shortage.

Despite this, lawmakers managed to advance measures very similar to the original proposals. With political pressure mounting and pushback against his housing approach, Sánchez has set an early national election for November 29th.

“We will not allow any more evictions like the one Maricarmen suffered or like those that have occurred since the decrees were repealed,” Sánchez stated, referencing Abascal, while addressing reporters at the Presidential Palace.

The newly approved measures include:

• Housing Access: Streamlining the process for purchasing or renting homes.
• Tenant Protections: Expanding protections against evictions and regulating room rentals.
• Market Control: Implementing taxes on seasonal rentals and banning speculative property purchases.
• Financial Incentives: Offering tax benefits for prompt-paying tenants and property owners.

Additionally, Sánchez announced the establishment of a €10 billion ($11.2 billion) fund intended for construction subsidies and first-home loans of up to €50,000 ($56,000).

Due to the dissolution of Parliament for the upcoming election, these measures will need ratification from a shorter interim legislature instead of the usual larger body, requiring just 35 votes from the 69-member assembly to pass.