The proposed legislation was split into two separate decrees.
The first decree proposed suspending evictions of vulnerable tenants until 2030, extending rental leases expiring before 2028 by two years, increasing taxes on tourist apartments, and restricting purchases of residential properties by “vulture funds”.
The second decree introduced automatic renewal of rental contracts, a key demand from left-wing groups and the Tenant’s Union.
Parliamentary votes rejected the first decree by 178 to 172 and the second by 184 to 166.
The conservative People’s Party (PP) and far-right Vox had already declared their intention to vote against both initiatives, leaving the minority government reliant on support from smaller nationalist parties in Catalonia and the Basque Country.
However, by the eve of the parliamentary session, the centre-right, pro-independence Together for Catalonia (JxCat) had signaled its opposition to both decrees, effectively sealing their defeat.
Sánchez’s minority government hastily drafted the decree laws in an attempt to quell the housing protests, which were reignited after 87-year-old Maricarmen Abascal was evicted in September.
Public outrage prompted the property owner, Urbagestión, to negotiate Abascal’s return under reduced rent terms. Despite this, protests have persisted.
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