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Spain’s Congress voted down the two decree-laws intended to protect vulnerable tenants and curb speculation in the rental market, with the first measure defeated 178 votes to 172 and the second falling 184 to 166. The conservative People’s Party, far-right Vox and the Catalan separatist Junts joined forces in opposition to the Socialist-led coalition’s proposals, according to a Reuters dispatch from Madrid. Protesters gathered outside parliament chanted “shame on you” and “your profits, our misery” as the results came in, while sources close to the government told Spanish media that Sánchez would spend the weekend weighing his next move, including the possibility of dissolving parliament.
The defeat came days after the eviction of 87-year-old Maricarmen Abascal from her Madrid home of seven decades triggered nationwide demonstrations that have since spread to multiple cities. Abascal’s removal on September 23, captured on video as she was carried out on a stretcher, crystallized public fury over soaring rents and a chronic shortage of affordable housing. According to an Associated Press report, around 1,000 protesters have maintained an encampment in Madrid’s Puerta del Sol square, refusing to leave until concrete tenant protections are enacted, while similar actions have emerged in Barcelona and other urban centers.
The rejected decrees would have banned evictions of vulnerable residents until 2030, imposed tighter rules on short-term rentals, restricted purchases by so-called vulture funds and ensured automatic renewal of existing leases at the tenant’s option. A New York Times account noted that Junts withdrew its support at the last minute, arguing the measures would reduce rental supply and drive prices higher. Housing Minister Isabel Rodríguez told lawmakers the vote represented a choice between backing ordinary citizens and siding with speculators, in remarks carried by multiple outlets including The Guardian.
Official figures underscore the depth of the problem confronting Spanish authorities. The central bank has estimated a housing deficit of 750,000 units that could exceed one million by 2028, while construction rates remain at roughly one-sixth of pre-2008 financial crisis levels. Data from real estate portal Idealista, cited across reports from BBC and Al Jazeera, show average rents have nearly doubled in the past decade, reaching about €1,176 per month this year, equivalent to nearly 99 percent of the average young person’s salary. National statistics institute INE placed house price growth at 12.2 percent in the year to the second quarter of 2026.
Political analysts and government insiders have tied the parliamentary setback directly to growing discussion of an early vote. El País and El Diario reported that senior Socialist figures are considering a snap election as soon as November 29, framing housing as a galvanizing issue ahead of the originally scheduled 2027 contest. Deputy Prime Minister Yolanda Díaz declined to rule out the option in a Cadena SER interview, while opposition leader Alberto Núñez Feijóo of the People’s Party urged Sánchez to call the vote immediately. The question of whether Spain’s housing crisis will lead to a snap election has dominated coverage in recent days as the minority government navigates additional pressures from migration challenges and corruption inquiries.
The episode highlights the fragility of Sánchez’s coalition, which holds 147 seats in the 350-seat chamber and relies on ad hoc support from smaller regional parties. A PwC assessment of European political stability flagged Spain’s fragmented parliament as particularly vulnerable to such defeats on domestic policy. Protesters and the Tenants’ Union have vowed to sustain pressure with further rallies, ensuring the housing issue remains at the forefront regardless of when elections occur.
