Lawmakers from Spain's conservative People's Party, the far-right Vox party and the Catalan pro-independence Junts party have voted down emergency housing measures proposed by Prime Minister Pedro Sánchez's Socialist-led coalition. The rejection on Friday triggered a wave of nationwide protests, with thousands taking to the streets across Spain demanding action on the country's escalating housing affordability crisis.
Congress rejected two separate decrees by significant margins. The first decree failed by 178 votes to 172, while the second was defeated 184 to 166. The measures included a ban on evictions until 2030, regulation of temporary lettings and room rentals, an extension of leases set to expire before 2028 by two years, raised taxes on tourist apartments and restrictions on purchases of residential property by entities the government describes as "vulture funds."
As the parliamentary debate unfolded, demonstrators gathered outside the Madrid parliament building holding homemade signs depicting vultures.
"Your profits, our misery,"the protesters chanted in response to the vote. The People's Party defended its opposition to the proposals, arguing that construction rather than regulation offered the genuine solution to housing shortages.
"Housing doesn't become more affordable through decrees; it becomes more affordable by building more homes,"said lawmaker Juan Bravo.
The parliamentary defeat sparked coordinated action across Spain. About 50 planned marches took place in cities including Madrid, Valencia and Barcelona on Saturday, 3 October. According to a European news outlet, organisers estimated that approximately 500,000 people attended the Madrid demonstration, though authorities provided a lower estimate of around 70,000. In Valencia, clashes occurred between some protesters and police near the Palau de les Arts Reina Sofía arts centre, which was hosting a real estate summit. According to international news reports, five people were arrested in Valencia following the clashes.
One protester in Madrid, David, expressed the movement's determination ahead of the Saturday demonstration:
"We're not here for pleasure or comfort. We're here out of conviction."The renters' association Sindicato de Inquilinas responded to the parliamentary defeat by calling for further demonstrations and pledging to push for a general strike.
"They're not going to stop us,"the Confederation of Tenants' Unions stated, adding:
"In the face of a parliament that is out of touch, the answer is more organisation and mobilisation. The next step: a general strike."Madrid's Tenants' Union noted that although the government's proposed measures were insufficient, the rejection of the proposed legislation
"exacerbates the housing crisis which is costing the working class their lives."
What triggered the housing crisis movement?
Public anger over Spain's housing market reached a breaking point on 23 September when Maricarmen Abascal, an 87-year-old woman who uses a wheelchair, was forcibly removed from her apartment. Abascal was removed on a stretcher and subsequently admitted to hospital following the eviction. The investment company Urbagestión, which had purchased her property in 2018, had demanded a rent increase from €500 to €2,650 monthly—a 430% rise—which Abascal said she could not afford.
Abascal's case crystallised long-standing frustrations about Spain's rental market. Over the past decade, rents have surged by 80% while property prices have climbed 63%, creating severe hardship for many households. Earlier this year, the Youth Council of Spain reported that the average rental deposit for people under 30 amounted to an amount equivalent to 98.7% of the average annual salary for that age group. According to national statistics, house prices have risen by 12.2% in the past year, while rental costs rose by 8.5% in 2025. Madrid alone saw an increase of 9.7% in rents, with Barcelona and Madrid identified as Spain's most expensive cities to rent a home, at €23.80 and €22.70 per square metre respectively.
Although the investment firm that purchased Abascal's apartment subsequently agreed to allow her to return at a rent closer to her previous level, the eviction had already galvanised a broader movement demanding systemic change.
How has public opinion shifted on housing intervention?
Polling released on Friday indicated that two-thirds of Spain's population supports government intervention in the housing market to control prices. This backing has translated into sustained street activism that has dominated national political discourse in recent weeks.
The protest movement began modestly one week before the parliamentary vote when a small group of activists established 10 tents in Madrid's central Puerta del Sol plaza, a short walk from parliament. The encampment has since expanded into what demonstrators describe as a peaceful settlement with its own street names, a medical centre and a co-working space. When news of Friday's parliamentary defeat reached the camp, protester Marta García expressed disappointment:
"People here are disappointed. We had thought that at least one of the decrees would be approved."
What were the specific measures in the rejected decrees?
The first decree proposed extending leases due to expire before 2028 by two years, raising taxes on tourist apartments, restricting purchases of residential property by what the government terms "vulture funds"—investment entities that acquire properties to maximise returns through rent increases—and suspending evictions of vulnerable tenants until 2030.
The second decree would have made rental contracts renew automatically and indefinitely, with landlords required to pay tenants 12 months' rent if they terminated a contract without just cause. Together, the measures represented the government's attempt to address what it framed as a crisis requiring urgent intervention.
Prime Minister Sánchez had framed the vote as a moral choice.
"You're with the social majority or with speculators,"he stated on social media before the vote, predicting that the parliamentary outcome would reveal the
"true colours"of right-wing parties. His coalition government, made up of his ruling Socialist party and junior partner the Sumar alliance, does not command a majority in parliament, leaving it dependent on support from smaller nationalist parties. However, by the eve of the parliamentary session, the centre-right, pro-independence Together for Catalonia had signalled its opposition to both laws, condemning them to failure.
What is the scale of Spain's housing shortage?
The Bank of Spain estimates the country is short of 700,000 homes, based on the gap between demand and new construction. This structural deficit underpins the rapid price increases affecting both renters and buyers across the country.
What happens next for the housing movement?
Protest organisers have vowed to continue demonstrations across Spain and maintain their encampment in Madrid following the parliamentary defeat. According to a European news outlet, the Tenants' Union is demanding a 50% rent cut, open-ended contracts and the expropriation of homes from investment funds. The Confederation of Tenants' Unions has called for nationwide action and is mobilising support for a general strike, though no date has yet been set for the proposed general strike as the union negotiates with other organisations.
The parliamentary defeat has also heightened speculation that Prime Minister Sánchez might call an early general election, which was not due until next summer. The housing crisis has become a defining issue in Spanish politics, shifting national attention and breathing new life into tenant activism. With two-thirds of the public supporting intervention and street protests showing no signs of diminishing, the question of how Spain addresses its housing affordability crisis remains unresolved and increasingly urgent.
Key Facts
- Congress rejected two emergency housing decrees on Friday by votes of 178–172 and 184–166
- The measures included an eviction ban until 2030, automatic lease renewal, and restrictions on property purchases by investment funds
- Rents in Spain have risen 80% over the past decade while property prices climbed 63%; the Bank of Spain estimates a shortage of 700,000 homes
- The protest movement began after the eviction of 87-year-old Maricarmen Abascal on 23 September and has grown into a sustained encampment in Madrid's Puerta del Sol plaza, with nationwide demonstrations on 3 October attracting tens of thousands of participants
- Two-thirds of Spanish voters support government intervention to control housing prices
