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Spanish housing decree imperilled by opposition of Junts party - Finance news and analysis from Global Banking & Finance Review
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Spanish housing decree imperilled by opposition of Junts party

Published by Global Banking & Finance Review

Posted on October 1, 2026

2 min read

· Last updated: October 1, 2026

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Spanish Housing Decree at Risk Amid Junts Party Opposition and Rent Reform Debate

Political Standoff Threatens Housing Crisis Measures

By David Latona

Junts Party Raises Concerns Over Housing Supply

MADRID, Oct 1 (Reuters) - Chances that Spain's Congress would pass a decree aimed at curbing the housing crisis grew dimmer on Thursday after Catalan kingmaker party Junts raised last-minute issues and requested the government devise a new proposal on the eve of a scheduled vote.

Junts, a separatist centre-right party with seven MPs, argued that the proposed measures would make matters worse by reducing housing supply. These include a ban on evictions of vulnerable tenants until 2030, a two-year rent freeze extension for existing leases, and tighter rules for short-term rentals. 

Junts' Statement on Housing Measures

"Many of the measures included will produce the opposite effect of what is intended: they will reduce the supply of rental housing, drive up prices, and make it even harder for people with limited financial means to access housing," Junts said in a statement.

Government's Struggle for Support

Spanish Prime Minister Pedro Sanchez's minority leftist government has only 147 seats in the 350-seat chamber and relies on the support of a patchwork of smaller parties to pass legislation. 

Opposition and Legislative Challenges

Opposition parties have already signalled that they will not support the decree, one of two crafted by Spain's Socialist government after protests sparked by the eviction of 87-year-old Maricarmen Abascal last week.

Public Protests and Calls for Reform

Thousands of mostly young activists camped out in Madrid's main square and other Spanish cities to protest the eviction and call for major reforms.

Second Decree Faces Uncertain Future

A second decree, which would permit automatic and indefinite renewal of rental contracts, was already expected not to pass, failing to secure the minimum support required from Spain's fractured Congress.

Reactions from the Public

"I already thought the measures were insufficient and only temporary, but vetoing them is selfish and abandoning the people," Aidan, a 26-year-old wildfire firefighter, said of Junts' decision not to back the measures. "We'll keep up the encampment," he added.

Reporting Credits

(Reporting by David Latona, Victoria Waldersee, Aislinn Laing; Writing by Victoria Waldersee; Editing by David Gregorio)

Key Takeaways

  • Junts’ rejection of both housing decrees—blocking eviction protections until 2030 and rent controls—threatens the Socialist-led government’s legislative strategy (elpais.com)
  • The eviction of 87‑year‑old Maricarmen reignited public outcry and protests, but political alignments remain unchanged, leaving reforms in peril (elpais.com)
  • By refusing to support the decrees and demanding their withdrawal, Junts underscores its role as a pivotal kingmaker—and its alignment with landlord interests—just days before a contentious amnesty vote (elpais.com)

References

Frequently Asked Questions

Why is the Spanish housing decree in jeopardy?
The Junts party withdrew its support, arguing the decree would reduce housing supply and raise prices, making passage unlikely.
What measures are included in the housing decree?
The decree includes a ban on evictions of vulnerable tenants until 2030, a two-year rent freeze, and tighter short-term rental rules.
How many votes does Spain’s government have in Congress?
Prime Minister Pedro Sanchez’s government has 147 seats out of 350 in the Spanish Congress and relies on smaller parties to pass legislation.
What triggered the protests supporting housing reforms?
Protests erupted after the eviction of 87-year-old Maricarmen Abascal, leading to widespread activism demanding new housing reforms.
What is the expected outcome for the second decree on rental contracts?
The second decree, allowing indefinite rental contract renewal, is expected to fail due to insufficient support in Congress.

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