The umpteenth attempt to curb short-term rentals lands in Congress amid the Junts-PSOE split

BarcelonaHas access to rental housing improved since the price cap came into effect? The answer isn't clear, but 18 months after the rent limit was implemented, accessing the rental market is more difficult than before: there's less turnover, and finding a decent apartment at a good price is an exasperating task. Furthermore, the most recent data on the price of new rental contracts doesn't exactly inspire confidence: the cost of renting an apartment in Barcelona and throughout Catalonia rose in the second quarter, after a year of consecutive declines.

Among the causes of this tension in the rental market, where demand far exceeds supply, are seasonal and room rentals, a loophole many landlords have exploited to circumvent price controls, which only apply to contracts for primary residences. The state housing law, passed in May 2023, did not include strict regulations for these types of rentals, and since then, several administrations have attempted to curb this legal loophole. All have been unsuccessful so far. The unknown factor is Junts, which is currently under veto control in the Spanish government following its split with the PSOE. This Tuesday marks the start of the latest attempt in Congress, with a bill proposed by Sumar, Bildu, Podemos, and ERC entering the drafting phase. The initial proposal, which seeks to reform the Urban Leases Law (LAU), clarifies that temporary rentals are also "residential leases," from the perspective of the applicable limitations. Furthermore, it stipulates that when they exceed nine months or are extended twice, they will be considered leases for primary residences.

The umpteenth attempt

The fact that the proposal comes from parliamentary groups, and not the central government, could facilitate negotiations. However, so far, the Junts party hasn't shown much enthusiasm for this initiative either. The first time the proposal to regulate this type of rental reached Congress, Junts, along with the PP, blocked its progress. In the second attempt, in December 2024, they voted in favor, arguing that the new text didn't call into question the powers of the Generalitat (Catalan government). Sources from the proposing groups say that nothing is finalized and that, for now, "the parties are still talking."

The first attempt to curb this type of rental was promoted by Pere Aragonès's government. In April 2024, the Catalan government presented a decree law that, a month later, the PSC and Junts parties rejected in the Parliament's standing committee. The decree established the obligation to specify and prove the purpose for which the seasonal rental property is being rented.

Parallel procedures

This path will run parallel to the one underway in the Parliament of Catalonia, where the PSC, ERC, Comuns and CUP have agreed on a Catalan regulation of this type of rental that limits it exclusively to homes linked to holidays or recreational uses. The text is clear: Any lease intended to satisfy the need for "permanent housing" falls under the scope of housing law and, therefore, is subject to rent caps. Failure to comply exposes offenders to penalties. to fines of up to 900,000 eurosThis is in accordance with the regional sanctions regime. Moreover, it was a commitment that the President of the Generalitat, Salvador Illa, signed with the Republicans and the Comuns in the investiture agreement, after the PSC (along with Junts) had rejected a virtually identical regulation in the previous legislature. At that time, the Socialists expressed doubts about the possibility (and the suitability) of regulating this phenomenon only at the Catalan level, and not through a reform of the Urban Leases Law (LAU) that would affect the entire country. In any case, the Catalan regulation was expected to be approved by the plenary session this November with the votes of the left-wing parties in the Parliament, but the PP and Junts have appealed it to the Consell de Garanties Estatutàries (Council of Statutory Guarantees). The opinion of this body is not binding, but the appeal delays the final vote on the text by at least a month.

Meanwhile, Sumar and ERC continue to pressure the PSOE to try to remedy the housing price crisis. Through the Ministry of Consumer Affairs, led by Pablo Bustinduy, Sumar has announced a decree aimed at freezing rents in high-demand areas, introducing sanctions for those who commit fraud with tourist apartments and seasonal rentals, and limiting speculative housing purchases—a measure that the Comuns are also trying to promote through Catalan legislation. Now, they will have to negotiate it with the PSOE within the coalition government. Furthermore, Esquerra will present a bill in Congress this Tuesday to toughen taxes on those who "want to accumulate more apartments to enrich themselves," in an attempt to curb speculation."Those who work to accumulate wealth, those who choose to enrich themselves, must pay more. No one would understand a Catalan party siding with speculative funds, given that housing is the country's main problem," said ERC spokesperson Isaac Albert, in an implicit reference to Junts.