Housing crisis in Spain sparks protests and leads government to approve tenant protection decree
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Housing crisis in Spain sparks protests and leads government to approve tenant protection decree

Following the eviction of Maricarmen Abascal, an 87-year-old woman, in Madrid, Spain, about a week ago, public indignation led thousands of people to the streets to protest against the housing crisis in the country. In response to the various demonstrations in the Spanish capital, Pedro Sánchez's government accelerated the approval of a decree aimed at protecting tenants against evictions and uncontrolled rent increases.

Although the issue was already being debated, it gained greater prominence after the case of Maricarmen, who was removed from the apartment where she had lived since 1956, in the Retiro neighborhood of Madrid.

Recent key developments

The Council of Ministers of Spain met this Tuesday with the purpose of sanctioning a decree that would provide support to tenants against evictions and abusive rent adjustments, under strong pressure from the protests that mobilized thousands of citizens.

With the slogan 'not another Maricarmen,' about 300,000 people, according to data from the Madrid Tenants Union, and 25,000, according to authorities, demonstrated on Saturday in the city streets. Hundreds of these protesters have remained camped in the Puerta del Sol square since then, setting up approximately 400 tents.

The Tenants Union asked the government for the immediate approval by the Council of Ministers of a 'Maricarmen decree,' aiming to prevent the eviction of vulnerable tenants, such as Maricarmen Abascal, who is elderly and has no other housing. Furthermore, the association demanded the automatic renewal of rental contracts without arbitrary increases, provided that tenants fulfilled their financial obligations.

Camps in defense of housing

The Tenants Union reported that the camps organized in protest against the housing crisis are spreading across several cities in Spain. The largest concentration of mobilization is in Madrid, specifically in the Puerta del Sol square, where hundreds of people have been staying in about 400 tents since Saturday night.

Regional government demands national executive action

The regional government of Madrid, led by the Popular Party (PP), gave the national executive a 48-hour deadline to dismantle what it called an 'illegal camp' in the city center, warning that it would resort to the courts if the situation persisted. The spokesperson for the regional government, Miguel Ángel García, stated at a press conference at the headquarters of the autonomous executive that 'impunity, illegality, and disorder cannot continue unchecked in Puerta del Sol.'

Package of measures approved to restrict evictions

Early Tuesday afternoon, the Spanish government approved, during the Council of Ministers, a set of housing measures that limit evictions, prohibit the acquisition of properties by investment funds, and automatically extend lease agreements. According to information released by the Minister of Health, Mónica García, on the social network X, and executive sources, the measures also include the regulation of temporary and room rentals.

The same sources indicated that the approved package establishes extraordinary provisions to restrict evictions until 2030, in addition to guaranteeing the automatic extension, for a period of up to two years, of existing rental contracts expiring before 2028. The ban on purchasing homes by investment funds will be valid until the end of 2028. Additionally, a second decree approved in the same session provides for the automatic renewal of rental contracts for an indefinite period, addressing one of the main demands of the organizers of the protests in Spain last week.

Situation in Portugal

In Portugal, tomorrow the Parliament will debate the Government of Luís Montenegro's bill to modify the urban rental regime, which includes measures such as more flexible contracts and faster eviction processes. This reform, which complements the housing crisis combat package launched a year ago by the Government, allows for eviction to begin after two months of overdue rent, compared to the current three months.

Other procedural changes include the elimination of bureaucratic steps: previously, a judicial decision favoring eviction required a subsequent enforcement process, which only then culminated in the eviction; the new proposal dispenses with this phase, with the initial opinion of a judge being sufficient. It is relevant to recall that on July 9, the Council of Ministers had approved new guidelines for the transition of contracts prior to 1990 to the New Urban Rental Regime (NRAU), as part of a broader sector reform and the fight against the housing crisis.

With the aim of making the rental market more flexible and with the expectation of reducing prices, the Government reduced the increase cap from 2% for new contracts (compared to the previous contract), except for people over 65 or with a disability incapacity equal to or greater than 60% and annual income less than 64,400 euros. Furthermore, landlords can request up to three advance deposits, without a value limit.

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