On October 6, 2026, Spanish Prime Minister Pedro Sánchez announced the approval of two Royal Decree-Laws by the Council of Ministers, which include 21 measures focused on housing. He stated that these new regulations "maintain the essence" of previous proposals that were rejected in Congress, while incorporating "very positive" changes.
During a press conference at La Moncloa, Sánchez explained that the government decided to move forward with these measures as the circumstances had not changed since the previous week. He urged parliamentary groups to support the validation of these decrees in the Permanent Deputation, emphasizing that the issue transcends ideology and is fundamentally about humanity and common sense.
Sánchez characterized the measures as not only "ambitious" but also "reasonable and necessary," resulting from extensive technical analysis and dialogue with social organizations, the real estate sector, landlord and tenant associations, and parliamentary groups. He highlighted that these initiatives aim to unite small property owners and tenants while taking a stand against speculative investment funds.
Key Objectives of the New Housing Measures
The Prime Minister outlined four main objectives of the approved measures:
- Facilitating access to affordable rental housing and home purchases: The regulations will allow tenants to deduct part of their rental payments from their income tax, potentially saving nearly €1,000 annually for an average rent of €800. Additionally, small landlords who rent at affordable prices will receive tax incentives. A significant new feature is the establishment of a €10 billion financing line from the ICO (Official Credit Institute) that will provide interest-free loans of up to €50,000 for first-time homebuyers.
- Increasing housing supply: The decrees aim to boost housing availability by allocating €280 million in guarantees to promote industrialized housing construction and €400 million to support social housing providers. Furthermore, the public housing company CASA47 will incorporate properties from the Social Security system for residential use.
- Providing stability for landlords and tenants: The measures include a two-year extension for rental contracts for tenants who are up to date on payments, as well as limitations on rent increases. Clear rules will be established regarding contract renewals and terminations, defining when landlords can reclaim their properties.
- Combating speculation: The approved measures will regulate seasonal and room rentals, limit property purchases by speculative investment funds, tie tax benefits for REITs (Real Estate Investment Trusts) to affordable rentals, and require tourist rentals to be taxed as businesses.
Despite these measures, Sánchez acknowledged that they would not resolve the housing crisis on their own. He stressed the need for a more robust intervention in the housing market and the continued construction of hundreds of thousands of additional homes, particularly public and affordable rentals. He expressed the government's "indignation" over the previous week's failure to pass these measures in Congress, noting the extensive dialogue and technical rigor that went into their development, as well as the many Spaniards awaiting a solution.
