Pedro Sánchez has brought a 21-measure housing package back to Spain's lawmakers after Congress rejected two decrees on 2 October 2026. The plan covers rent protections, first-home finance, supply and limits on speculative and tourist rentals, but several financial figures still need checking against the original texts.
The first decree failed by 172 votes to 178. The second lost by 166 votes to 184. Both votes took place in the Congress plenary on 2 October 2026.
Because the measures needed parliamentary ratification, they lost legal effect after the defeats. Sánchez has now put the two housing decrees back before lawmakers. The package contains 21 actions aimed at cutting the cost of renting and buying a home.
The government's proposal puts its largest financial commitment at €10 billion. The money would fund an ICO financing line for people buying their first property. Independent reports available for this article do not verify that figure against the decree text or Ministry of Housing documents.
The government first sought validation through the Diputación Permanente. Speaking in Moncloa, Sánchez said the circumstances had not changed since the defeat. He described the package as a practical response, not an ideological project.
The numbers were clear.
The first decree was rejected by 172 votes to 178; the second failed by 166 votes to 184. The votes exposed the government’s inability to secure a stable parliamentary majority.
The plan covers both tenants and landlords. Tenants would be able to deduct part of their rent from income tax. The government says that could cut annual payments by almost €1,000 for someone paying an average monthly rent of €800.
Small landlords would receive tax incentives for offering homes at affordable prices. Those figures come from the original proposal. The underlying legislation still needs to confirm them.
First-time buyers would be eligible for interest-free ICO loans of up to €50,000. The proposal also seeks to increase the housing supply instead of relying only on financial relief. Independent reporting confirms the political and parliamentary context, but it does not independently establish the precise loan ceiling.
The package goes beyond purchase assistance.
The package went beyond purchase assistance. It also proposed suspending evictions of vulnerable tenants without alternative accommodation until the end of 2030, extending some rental contracts for two years and introducing restrictions aimed at speculative purchases and investment funds.
The decrees set aside €280 million in guarantees for industrialised housing construction. Another €400 million would go to providers of social housing. The original proposal also says thousands of Social Security properties suitable for housing could move into CASA47, the public housing company.
The guarantee amounts remain claims from that proposal. The available search evidence does not verify them independently.
Stability is another part of the plan. Tenants who are up to date with their payments could extend their contracts for up to two years. Rent increases would be limited. The government also wants clearer rules for renewals, contract endings and cases in which an owner can recover a property.
The first decree included a proposed suspension of evictions for vulnerable renters without alternative accommodation. That suspension would run until the end of 2030.
Predictability matters in a market where the government says tenants and small property owners both need protection. Sánchez has presented the plan as a pact between those groups, rather than a measure aimed at ordinary landlords.
The sharper restrictions target speculative activity. The package would regulate seasonal and room rentals. It would restrict home purchases by so-called vulture funds and tie socimi tax benefits to affordable rents.
Tourist flats would have to pay tax as businesses. A separate part of the second decree proposed a 10% VAT rate for tourist rentals. It also set tighter rules for short-term and seasonal accommodation.
The government says speculative operators, not small owners, should carry the greater burden.
Madrid's housing dispute has also moved into the courts. A court decision against an immediate eviction of the Sol housing protest camp was reported earlier.
Sánchez has acknowledged that the decrees cannot solve Spain's housing crisis alone. He says the country needs firmer market intervention and hundreds of thousands of additional homes, especially public housing and affordable rentals.
The government did not have the votes. The People's Party, Vox and Junts per Catalunya opposed the measures. The Basque Nationalist Party and Coalición Canaria also voted against the second decree, according to parliamentary reporting cited by Euronews and other international outlets.
The defeat soon became a wider political problem. Pressure on Sánchez increased, and expectations of an early election grew. On 5 October 2026, he announced snap parliamentary elections for 29 November.
The failed housing package had become a test of whether his government could govern without a reliable majority.
Public reaction moved beyond Parliament. Tens of thousands of people marched in more than 50 Spanish cities after the vote. They demanded stronger tenant protections and action against rising housing costs.
The protests showed the gap between the urgency felt by renters and the government's difficulty in turning its proposals into law.
The measures offer targeted help, not a complete solution. Rent deductions and first-home loans could ease access for some households if lawmakers validate the proposals. Construction guarantees and the transfer of usable public properties address supply.
Contract extensions and rent limits would seek to prevent sudden insecurity. The anti-speculation rules give the package its clearest political edge.
Sánchez has returned to Parliament with a more detailed housing plan. The two decrees have already been rejected. Their future now depends on a new legislative route and the result of the 29 November election.
