Sumar agrees with the PSOE on the extension of rents until 2028

Madrid / BarcelonaSumar announced this Wednesday that it has agreed with the PSOE on the extension of rents until 2028 through a new housing decree that will also include tax incentives for owners, an indispensable measure to achieve the text to be finally approved with the favorable vote of Junts in Congress.

This decree, which the Spanish government had tried to push forward, but which Congressvoted down in April with the opposing vote of PP, Vox, and Junts, was one of the executive's pending issues, especially for the minority partner of the executive, Sumar. The party founded by Yolanda Díaz had proposed to bring the measure back to the council of ministers to be approved before summer so that the freezing of rents would become a reality as soon as possible.

"The new royal decree-law includes a broad package of measures that will provide a comprehensive solution to the problem of access to housing, currently the main concern of the Spanish citizenry," Sumar assured in a statement. The party has not spoken, however, about possible concessions to third parties, especially Junts, the PNB, and Podemos.

Despite Sumar's announcement this Wednesday, the Ministry of Housing, held by the PSOE, assured that it already planned to bring a new draft decree to the council of ministers. Ministry sources explained to the media that "in favor of the agreement," they will maintain "discretion about the content" of the text. The same sources assure that the decree will be "broad, ambitious, and will include structural solutions for the housing problem".

Possible lack of votes in Congress

The main difficulty in approving this text is not in the Council of Ministers, where the announced agreement clearly shows the understanding between the Socialists and Sumar. Once the Spanish government gives it the green light, the content of the norm will enter into force temporarily until Congress validates it a few weeks later.

It is precisely in this parliamentary vote that there are doubts about the viability of the decree: Junts already voted down the first version because it required tax bonuses for owners of rental flats that the text did not include. In this regard, in a statement, the party led in Congress by Míriam Nogueras has requested tax deductions for tenants, as well as for a part of the mortgage payment for small owners.

Junts also requests measures to stimulate new construction, more investment in public housing, the unblocking of the law against squatting, and the recovery of housing accounts for young people.

However, if these bonuses do appear in the new decree, it is Podem who could vote against it and, therefore, make the text fall for the second time. In fact, this Wednesday Podem has described the reform of the land law included in the draft decree as a "red line". This modification would involve, according to the parliamentary group, "legalizing illegal urban planning projects retroactively" and eliminating "the right of a former owner to recover land expropriated for public interest".

However, another indispensable group for the norm to move forward in the Spanish parliament, the PNB, has asked the government to modify the land law to "streamline planning and avoid blockages", regulate seasonal rentals to "combat fraud" and guarantee "respect for regional competencies".