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Government to Present Emergency Housing Decree as Coalition Talks Stall

The draft would extend some leases, suspend certain evictions and tighten tourist‑rental rules with key partners demanding either limits on investment funds or stronger tenant guarantees.

Overview

  • The government plans to bring a real decreto-ley to the Council of Ministers that would allow annual extensions of expiring leases up to two years, suspend some evictions through 2028, increase tenant tax relief in tensioned areas and impose stricter rules on short-term tourist rentals.
  • Junts has warned it may withdraw support because the draft does not include a clear temporary ban on purchases by large investment funds and, the party says, does not sufficiently protect small private owners.
  • Sumar welcomes measures such as price freezes and contract extensions but demands further steps including automatic contract renewals and regulation of room rentals to deliver longer-term stability for tenants.
  • Moncloa is weighing splitting the package into two decrees to push broadly backed measures through Congress quickly while negotiating more contested 'maximum' provisions in parallel.
  • Public pressure from the Maricarmen eviction and sustained protests in Madrid have forced the timetable and raised the risk that the decree will fail unless negotiators resolve the fund‑purchase and tenant‑protection disputes, which would keep protests and political uncertainty alive.