The Government's new housing decree is once again in danger even before reaching the Council of Ministers. Junts has warned that it will reject the draft agreed upon by PSOE and Sumar if it maintains its current wording, a position that leaves the extension of rental contracts until the summer of 2028 without a parliamentary majority.
Carles Puigdemont's party considers that the text continues to rely on "interventionist" measures and does not incorporate the bulk of its proposals. "If it maintains measures that perpetuate occupations and do not protect either the tenant or the small owner, and does not incorporate Junts' proposals, it will not have our support," party sources warned.
The rejection is decisive. The decree needs to be validated by Congress after its approval and publication in the BOE, and the current sum of support is once again insufficient given the opposition of PP and the far-right Vox and the reservations expressed by other usual partners of the Executive.
An extension that could benefit four million people
PSOE and Sumar had announced this Wednesday their agreement to include an extraordinary extension of up to two years for habitual housing contracts that expire before June 30, 2028. According to the calculations of the Government's minority partner, the measure could reach nearly four million people spread across one and a half million households.
The extension would allow tenants to remain in their homes during that period without having to sign a new contract in a market marked by rising prices. It constitutes Sumar's main achievement within a broader decree that also aims to curb the fraudulent use of seasonal and room rentals.
Junts demands a different approach. Its proposal includes IRPF tax breaks for tenants, deductions on part of the mortgage payment for small owners, and the recovery of savings accounts intended for buying a home. The draft limits tax aid to certain young people and to landlords who rent below market rates or lower the price, a response that the independentist party considers insufficient.
The party also demands to unblock its proposition against illegal occupation to accelerate evictions. Its criticisms are especially directed at the suspension of evictions when a vulnerable family lacks a housing alternative.
The text attempts to shift part of that cost onto the administrations. The autonomous communities would have to compensate owners who are not large holders for unpaid rents and supplies, as well as for damages caused during the time the eviction remains suspended. Junts demands that the State directly assume the entire bill for social housing policies.
The April precedent haunts the Government
The threat comes less than three months after the previous parliamentary failure. On April 28, Congress repealed another royal decree that allowed rental contracts to be extended for two years and limited the annual update of rents.
That vote ended with 166 votes in favor, 177 against, and five abstentions. PP, the Vox ultras, and Junts overturned the norm, while the PNV opted to abstain, despite Sumar's attempts to reach an agreement up to the hours before the plenary session.
The decree was in force for approximately one month before lapsing. The new pact between the two government partners intended to recover that protection and extend its scope until June 2028, but Junts' first reaction returns the negotiation to the same point.
The pro-independence party insists that the policies applied so far have reduced supply and shifted housing access problems to municipalities where they previously had less incidence. Against price limitations, it advocates increasing construction, mobilizing empty flats, and resorting to tax incentives.
Podemos and the PNV also set conditions
Junts is not the only partner questioning the draft either. Podemos has set the reform of the Land Law included in the decree as a red line, considering that it reduces judicial controls over urban plans and can facilitate the subsequent legalization of irregular projects.
Ione Belarra's party demands the withdrawal of that block before opening a negotiation on the rest of the measures. It also demands maintaining protection against evictions for vulnerable people and rejects introducing requirements that reduce the number of beneficiaries.
The PNV maintains its opposing position on urban planning reform and defends its inclusion, although it asks for guarantees to preserve autonomous community powers. Regarding rents, Basque nationalists propose that the extension be reserved for those who are up to date with payments.
These demands leave the Executive facing interests that are difficult to reconcile. Sumar has assured that it will study the groups' proposals as long as they do not cause a price increase or weaken the permanence of families in their homes.
The decree also incorporates limits on temporary rentals. Contracts must justify their duration, cannot exceed twelve months, and, when rooms are rented separately, the sum of the rents cannot exceed the maximum price corresponding to the full apartment.
Tax modifications for SOCIMIs, incentives for owners who offer affordable rents, and new rules on tourist housing are also being prepared. The Government plans to take the text to the Council of Ministers on July 28, with still room to introduce changes before its parliamentary validation.
Junts and the PP halt another housing law in Catalonia
The rejection of the state decree coincides with another move by Junts in the Parliament. Puigdemont's party and the PP have requested a report from the Consell de Garanties Estatutàries on the Catalan law that aims to limit speculative housing purchases in stressed areas.
The request postpones the final vote, initially scheduled for this Thursday, until after the summer. The initiative was promoted by the Comuns and agreed with Salvador Illa's Government as part of the budget negotiation, although PSC, ERC, and the Comuns themselves were still discussing the definitive scope of the restrictions.
The proposal would allow city councils to prevent certain operations when the housing is not intended for habitual residence, for use by a family member, or for a stable rental subject to current limits. The amendments by PSC and ERC sought to focus restrictions on large owners.
Junts argues that the reform may violate the right to property, freedom of enterprise, municipal autonomy, and the free movement of goods. It also questions the use of urban planning legislation to regulate aspects of civil law.
The Council of Guarantees now has one month to issue an opinion, which will be advisory. The vote on the text will be postponed, at least, until the next parliamentary session, scheduled for late September or early October.
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