Parliament revisits the rental issue
In Madrid, nearly a year after its initial review, Congress deputies have resumed work on a bill set to change rules for short-term rentals and room letting. The initiative, put forward by a coalition of left-wing parties, was accepted for discussion back in December 2024, but only now has the first working group meeting been scheduled. On November 11, lawmakers will convene to start making amendments and discuss the details of the future law.
Reasons for the delay and political disagreements
The long pause in the review process has caused tension between the socialists and their parliamentary allies. Left-wing representatives have repeatedly demanded that the process be sped up, expressing frustration over the delays. The Ministry of Housing points out that new rules are essential to address rental violations, especially in the country’s major cities. The head of the ministry has called on deputies to work together to find compromise solutions.
New requirements for landlords and legal changes
The bill proposes adjustments to the current version of the Urban Lease Law (Ley de Arrendamientos Urbanos, LAU). The main goal is to equate temporary rental agreements with standard ones in order to curb their use in high-demand areas and reduce rental prices. Apartment owners will be required to justify the reason for a temporary contract, and the maximum duration of such agreements should not exceed nine months. If contracts are signed consecutively more than twice or the period exceeds the established limit, they will automatically be converted into standard contracts, granting tenants the corresponding protections.
Fiscal measures and tackling speculation
In addition to changes in rental regulations, lawmakers plan to consider introducing an extra tax for property owners who possess three or more real estate units. According to the proponents, these measures will help decrease speculation in the market and strengthen the social function of housing. Authorities stress that tax instruments are considered one of the most effective ways to influence the rental market.
Market impact and outlook
The new regulations are expected to primarily affect major cities, where short-term rentals are used to circumvent restrictions and boost profits. If the law is passed, landlords will face additional requirements, while tenants will receive greater protections. Further discussions and amendments are set to continue in the coming weeks, after which the bill may be put to a vote in Congress.
