Spain's Sánchez loses housing decree votes as eviction protests mount

Spain's Congress has rejected both of the government's housing decree-laws, defeating Prime Minister Pedro Sánchez on his signature response to the country's rental crisis. The first decree fell by 178 votes to 172, and the second was voted down by 184 to 166. Because the measures were introduced as decree-laws, they needed parliamentary approval to stay in force. Hundreds of demonstrators gathered outside Congress during the debate, and protesters chanted slogans including 'shame on you' after the results were announced.

The first decree would have suspended evictions of vulnerable tenants until 2030, extended rental leases due to expire before 2028 by two years, raised taxes on tourist apartments and restricted purchases of residential property by what the government calls 'vulture funds'. The second was more contentious, containing the automatic renewal of rental contracts, a long-standing demand of left-wing parties and the Sindicato de Inquilinas tenants' association. The government had drafted both measures hurriedly in an attempt to calm nationwide anger over housing costs.

The conservative People's Party and the far-right Vox had already declared their opposition, leaving the minority government reliant on smaller nationalist parties in Catalonia and the Basque Country. The centre-right, pro-independence Together for Catalonia (JxCat) signalled its opposition on the eve of the session, effectively sealing the decrees' fate. Speaking moments before the votes, Sánchez urged lawmakers: 'I don't ask you, I beg you to be brave and consistent... Because they are not just ambitious measures, they are necessary.' He said the market needed 'order and humanity', warning that otherwise it would 'bring down our society'.

Social Affairs minister Pablo Bustinduy, of the junior coalition partner Sumar, framed the debate in stark terms, saying a vote against the decrees meant defending an 'international oligarchy' and turning away from voters. JxCat's Miriam Nogueras countered that the legislation had been drawn up too quickly and lacked rigour, arguing it would let funds 'keep buying, keep speculating and evictions to keep happening'. The PP's Juan Bravo said 'housing doesn't get cheaper with decrees, it gets cheaper with more homes', reflecting the right's argument that intervention deters homeowners from renting out properties.

The Sindicato de Inquilinas, which has coordinated the protests, used the debate to announce it was ending its tent encampment in central Madrid. The group said it wanted to move the struggle into neighbourhoods, residential blocks and homes across the capital, turning the energy of recent days into a permanent organisation. Protesters have also called for a general strike over the housing crisis.

The defeat underscores that Sánchez, a Socialist, does not command a congressional majority, and it has intensified speculation that he could call an early general election, which was not due until next summer. Sources told Spanish media the government would spend the weekend weighing its next move, including whether to dissolve parliament. Sánchez's administration was already contending with a series of scandals and judicial cases affecting his Socialist Party and close allies.