Spain’s Housing Crisis Flares as Pedro Sánchez Loses Key Vote

Madrid – In a dramatic turn of events, Prime Minister Pedro Sánchez’s bid to tackle Spain’s mounting housing crisis was defeated in Congress on 2 October, after the eviction of an 87‑year‑old woman sparked nationwide protests.

The government presented two decree‑laws aimed at shielding tenants and curbing rent hikes, but the measures were rejected by 178–172 and 184–166 respectively, leaving Sánchez’s minority administration looking weaker.

The eviction of Maricarmen Abascal, who could not afford a sharp rent increase by the property manager Urbagestión, became a flashpoint. Protesters gathered outside the Congress, chanting “shame on you” and calling for an end to the so‑called “vulture funds.”

The decrees had included a suspension of evictions of vulnerable tenants until 2030, a two‑year extension of expiring leases, higher taxes on tourist apartments, and a ban on purchases by financial groups. The second decree also sought to automatically renew rental contracts, a key demand of tenant unions.

The vote exposed Sánchez’s lack of a parliamentary majority and reignited speculation that he may call an early general election, now due next summer. Sources said the government would spend the rest of the weekend weighing options, including a possible dissolution of parliament.

Meanwhile, the Sindicato de Inquilinas has pledged to transform spontaneous protests into a permanent organisation, while some right‑wing parties argue that government intervention would scare homeowners and stall new rental supply.

Photo: Pedro Sánchez speaks during the session – AFP via Getty Images