PSOE and Sumar agree to ban evictions of vulnerable people until 2030 and extend rental contracts for two years

MadridLast-minute agreement between PSOE and Sumar on housing. "The government parties have reached an agreement to approve the housing measures and provide a response to the citizens' demands," said Spanish government sources just as this Tuesday's Council of Ministers had already begun. In fact, the Spanish government meeting started an hour late due to the disagreement between the two members of the coalition. The point of contention was, basically, the automatic extension of rental contracts. Finally, the pact involves separating the measures decree into two different decree-laws.

In one, according to Spanish government sources, the moratorium on evictions for vulnerable families until 2030; the regulation of room rentals and seasonal rentals; the prohibition on the purchase of housing by vulture funds until 2028, and the extension of contracts for two years. In the other, the automatic renewal of all rental contracts, which is what all left-wing parties and the Tenants' Union are demanding. However, for these two decree-laws to be in force, they must be approved in the Congress of Deputies, which the Spanish government is demanding to pronounce itself this very Friday.

The fact is that, beyond the agreement within the executive branch, the difficulty lies in having this new legislation approved by the Congress of Deputies, which would have to validate them within a maximum period of one month. The main obstacle is finding consensus within the plurinational majority, since, while the left demands "ambitious" protection for rentals, Junts and the PNV ask that "small property owners" also be protected, distinguishing them from vulture funds, and that there be tax incentives to encourage supply. To try to push everything forward, which right now seems very difficult, the Spanish government has decided to divide the housing package into two decree-laws.

Therefore, the key is how these measures have been grouped, which may awaken different majorities in Congress.