Overview
- Spain faces a severe shortage of affordable homes with rent inflation that blocks many young people from moving out.
- Prime Minister Pedro Sánchez put forward tax incentives for landlords who keep rents unchanged.
- Sumar, led by Yolanda Díaz, rejected that approach and proposed automatically extending roughly 600,000 rental contracts.
- The competing plans have opened a rift in the Council of Ministers and could trigger constitutional challenges if extensions are imposed by decree.
- The PP also withholds support, and voices inside PSOE such as former minister Jordi Sevilla call for a course change to reach a broader pact.