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Spain's parliament has rejected emergency decrees to cap rent rises at 2% and halt evictions of vulnerable tenants, as protesters fill Madrid. The right call, or a blow to renters?

Spain's parliament has rejected emergency decrees to cap rent rises at 2% and halt evictions of vulnerable tenants, as protesters fill Madrid. The right call, or a blow to renters?

The decrees would also have extended some rental contracts and added 10% VAT to tourist lets. Opponents including the PP, Vox and Junts voted them down, with Junts arguing landlords would pull homes off the market. Organisers claimed up to 500,000 marched in Madrid on Saturday; the government put it at 70,000.

What happened

On 2 October Spain's Congress rejected two emergency housing decrees from Pedro Sánchez's minority government, by 178 votes to 172 and 184 to 166. They included a 2% cap on rent rises for existing contracts until the end of 2027, extensions for some expiring leases, a pause on evicting vulnerable people with nowhere else to go, 10% VAT on tourist rentals, and longer renewal terms for landlords. The vote followed the eviction of an 87-year-old pensioner in Madrid. On 3 October protesters marched in Madrid and about 50 other cities.

Why people disagree

Supporters say housing costs have become unaffordable, tenants are being pushed out of their homes, and only firm limits and eviction protection can help quickly. Opponents, including Junts, argue rent caps and forced renewals lead owners to withdraw homes from the rental market, cutting supply and pushing prices up further, and that building more homes is the real fix.

What's still unclear

Whether Sánchez will try again with a bill or call an early election, and whether rent caps in Spain would cut costs for tenants overall or shrink the supply of homes to rent.

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