Spain's parliament rejects housing bill as protests continue

MADRID, 3 OCTOBER 2026 —

Spain’s minority government suffered defeat in parliament on Friday when it tried to push through a pair of emergency housing decrees aimed at easing soaring rental costs, with Prime Minister Pedro Sanchez leading the effort.

The defeat matters because it leaves the government without immediate legislative tools to address a housing crisis that has seen rents roughly double over the past decade and left many young people living with their parents well into their thirties. Protesters have maintained a tent city in central Madrid and vowed to continue mass rallies, arguing that the emergency measures were necessary to stop evictions, curb real‑estate speculation and encourage renting through tax incentives.

Hundreds of demonstrators gathered outside the parliament building in Madrid during a marathon five‑hour debate, shouting “shame” and “your profits, our misery” as news of the votes spread. Sanchez addressed lawmakers ahead of the ballot, urging them to “do the right thing, or history will judge you, and sooner than you think.” The Catalan party Junts, which sometimes backs Sanchez’s government but is economically right‑leaning, joined the opposition in rejecting both decrees.

The first emergency decree, which the government said would halt evictions of vulnerable people, make speculation harder and provide tax breaks to encourage renting, was defeated by a narrow margin of 178‑172. The second decree, seeking to make residential leases automatically renewable by tenants, fell short by a wider vote of 184‑166.

Opponents argued that the measures risked worsening the situation by reducing housing supply, and some suggested that Sanchez should break the deadlock by calling early elections, potentially prompting a wholesale change of government.

The Tenants’ Union, which had spearheaded the nationwide protests, said it would press on with plans for additional mass rallies on Saturday to keep pressure on both the coalition and opposition. Alicia del Rio, a spokesperson for the union, told reporters, “The encampment will continue and will continue expanding to other neighborhoods,” and added, “We’re aiming for a general strike.”

The wave of protests was triggered by the high‑profile eviction of Maricarmen Abascal, an 87‑year‑old Madrid resident who had lived in her apartment for almost her entire life. The investment company that owns the building reversed the eviction after the case became a symbol of growing frustration over housing costs, but only after the issue had already ignited widespread dissent.

Abascal’s lawyer, Beatriz Duro, said in a Reuters interview, “People have said ‘enough is enough;’this ⁠cannot ​go on. The housing problem must be resolved; structural measures must be taken, and this cannot ​continue.” She also noted that rents have roughly doubled in Spain over the last decade and that young people, facing one of Europe’s toughest labour markets for school‑leavers and graduates, frequently remain in the parental home past the age of 30.

The next step after Friday’s failed vote in parliament is difficult to identify. Sanchez has so far ruled out calling early elections. He could try to formulate another emergency decree or decrees in response to the protests, but any such move would need to overcome the same parliamentary hurdles that defeated the initial proposals.

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