Government Approves Two Housing Decrees Again and Submits Them to the Permanent Deputation

On October 6, the Council of Ministers approved two new royal decree-laws on housing, after Congress rejected the previous texts. The Government maintains that the new rules retain their essence, although they include some changes, and is now seeking to have the Congress Permanent Deputation validate them following the dissolution of the Cortes. As of the date of the reports, no vote had been scheduled.

The President of the Government, Pedro Sánchez, defended the new approval and stated that the Executive would continue governing until the elections. Validation, however, depends on a parliamentary vote: the announced measures should not be mistaken for rules that have already been validated.

Two decrees with different measures

The first brings together measures to protect against evictions and support access to housing. Among them, the Government announced interest-free loans of up to €50,000 to purchase a first home, as part of a €10 billion financing facility managed by the Official Credit Institute. According to Sánchez, the measure is not limited to a specific age group.

The text also provides for an extraordinary two-year extension for certain current rental contracts expiring before December 31, 2028. The available information states that the tenant would have to request it and be up to date with payments. The decree also includes measures concerning the suspension of evictions of vulnerable people without alternative accommodation, within the scope and subject to the conditions set out in the text.

Among the changes described by the sources is a broader definition of purchase transactions considered speculative by the Executive. It is also provided that certain rental advertisements include information such as the reference index and, where applicable, the rent ceiling and the landlord’s status as a large property owner. The text also incorporates requirements for substantiating the reason for temporary contracts.

The second decree regulates the automatic renewal of rental contracts. According to coverage of its measures, the extension would be for five years, or seven when the landlord is a legal entity, if neither party gives timely notice of its intention not to renew. If the landlord fails to comply with this obligation, compensation of at least 12 months’ rent is provided for, subject to the exceptions established by the rule.

Validation remains pending

Following the dissolution of the Cortes, the Permanent Deputation is responsible for exercising the functions of the Chamber during the electoral period. Decree-laws must be submitted for validation or repeal within 30 days of their publication in the Official State Gazette. The reports consulted did not provide a specific date for the vote.

The composition of this body and the positions expressed in the previous vote make it possible to estimate the outcome, but do not determine it in advance. Europa Press estimated that the first decree could receive 35 votes in favor and 34 against if the groups maintain their previous positions. For the second, the same source indicated 34 votes in favor and 35 against, partly because of the PNV’s opposition. The party had said it would decide after examining the text and its legislative process.

Consequently, the prospects of validation are not the same for both decrees and depend on the groups’ final decision. Until the vote takes place, the measures remain subject to the corresponding parliamentary procedure; approval by the Council of Ministers alone does not amount to their validation.