The Congress's Permanent Deputation has given the green light this Thursday, November 12, to one of the two housing decrees promoted by Pedro Sánchez's Government, but has rejected the one that contemplated the automatic and indefinite extension of rental contracts. The vote, held on the eve of the start of the 29N election campaign and one day after the general strike for access to housing, has once again highlighted the differences between the parliamentary blocs.
The Congress's Permanent Deputation has given the green light this Thursday, November 12, to one of the two housing decrees promoted by Pedro Sánchez's Government, but has rejected the one that contemplated the automatic and indefinite extension of rental contracts. The vote, held on the eve of the start of the 29N election campaign and one day after the general strike for access to housing, has once again highlighted the differences between the parliamentary blocs.
The decree that did go ahead obtained 35 votes in favor and 34 against, while the proposal to automatically extend rental contracts was rejected by 35 votes to 34. In this way, the Executive manages to maintain part of its package of housing measures, although it loses one of its main bets to guarantee the continuity of leases.
The housing measures that the Government does manage to save
The approved text includes different measures aimed at strengthening the protection of tenants and facilitating access to housing. Among them, the extension of protection against certain evictions of vulnerable people without housing alternatives stands out, which is extended until December 31, 2030.
It also contemplates an extraordinary extension of up to two years for certain rental contracts whose termination occurs before December 31, 2028. Added to this is the limitation of rent updates to 2% until the end of 2027 in the cases provided for by the norm.
The decree also incorporates changes in the regulation of seasonal and room rentals, as well as restrictions on certain housing purchase operations by large landlords and entities with speculative purposes. Among the economic measures are also tax incentives for owners who reduce the rental price, a deduction for certain tenants, and new financing tools to boost social and affordable housing.
Congress rejects automatic extension of rental contracts
The other side of the vote has been the rejection of the second decree, which included one of the Executive's most ambitious measures: the automatic renewal of rental contracts for successive periods of five years, extendable to seven when the owner was a legal entity. The proposal also contemplated compensation of up to twelve monthly payments for owners who wanted to terminate the contract without a justified cause, in the terms established by the norm.
The text was rejected by the PP, Vox, Junts, and PNV, which prevented gathering the necessary support for its validation. The result represents a new setback for the Government in its attempt to extend tenant protection and comes in the middle of an election campaign, with housing as one of the main issues of the political debate.
The vote took place after the Executive re-approved both decrees in October, following the parliamentary rejection of their first versions. Now, the Government retains part of the announced measures, but fails to push through the automatic and indefinite renewal of contracts.
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