Pedro Sánchez’s government was left scrambling at the last minute after Junts rejected the housing decree, calling it “terrible” and “a failure.” The coalition’s majority now hangs by a thread, making new housing reforms less likely.
On September 29, 2026, the Spanish government approved two emergency housing decrees, including protections against evictions until 2030 and restrictions on speculative purchases by investment funds.
Officials started the week hopeful. They thought months of talks and concessions would be enough. Ministers said they had resolved the basic issues for their partners. One government source insisted, “There is no real argument to vote against.” Junts disagreed. The party set out its arguments, then used them to block the decree.
Junts demanded changes and wanted the decree rewritten to include its terms. The party warned that the current text would shrink rental supply and push prices higher, making it harder for low-income families to find homes. Junts also criticized the decree for failing to stop “vulture funds,” saying these investors could continue buying properties and evicting tenants. The party argued that the measures do not guarantee state help for renters at risk. It also called the decree “expropriation by decree” of family savings, since tenants could buy homes before heirs inherit them.
Other coalition partners agreed to back the decree despite their doubts. Junts broke away at the last minute, forcing the government to face a hard truth: the coalition cannot count on a stable majority. Passing a new budget now looks almost impossible. One senior socialist said, “This is a turning point.”
The government refused to withdraw the decrees. Officials said they had spent months trying to meet every group’s demands and claimed the executive had “done its part.” Now, each party must decide “which side they are on.” Sánchez called on parliament to “set aside ideologies and partisan confrontations” for “pure humanity.” In statements from Moncloa, the government described the measures as urgent because of the housing crisis. It said it had spent months negotiating with parliament to reach a deal.
Coalición Canaria voted yes after receiving a promise that the proposal would be processed as a bill, not a decree. That means further changes could come later. Junts remained unconvinced and wanted a full rewrite.
The government tried to use public pressure and accelerate the process, aiming to validate the decrees in 72 hours instead of 30 days. The backlash was swift and harsh. The executive tried to shift blame to its partners, deepening the crisis. Junts is now grouped with PP and Vox among parties accused of siding with “speculators” over ordinary people.
At the same time, lawmakers’ property holdings are under scrutiny. Recent reports show that many in Congress own more than one home. The gap between what politicians say and what they own is fueling the debate. Who really benefits from Spain’s housing policies?
With elections approaching, Sánchez’s government is on political life support as the legislative agenda stalls. By refusing Junts’ demands, both sides are digging in, exposing the limits of coalition politics when core interests clash. The housing crisis is worsening as alliances break down, and the government’s ability to deliver real reform is now in doubt.
