Spain’s housing crisis is driving tens of thousands of people onto the streets after parliament rejected two government measures aimed at strengthening tenant protections, adding to pressure on Prime Minister Pedro Sanchez’s minority government. Protests were held in Madrid and more than 50 other cities on Saturday, October 3, as campaigners demanded action on rising rents, evictions and the shortage of affordable homes.
The demonstrations came one day after Spain’s Congress rejected two emergency housing decrees proposed by the government. The first was defeated by 178 votes to 172, while the second failed by 184 votes to 166. The measures included protections for vulnerable tenants facing eviction, extensions to some rental contracts and restrictions on speculative property purchases by investment funds.
The Tenants’ Union, which helped coordinate the demonstrations, said there was a growing gap between public demands and decisions made in parliament. In Madrid, protesters gathered from several locations before heading towards Plaza de Cibeles, while activists continued an encampment in Puerta del Sol, where housing campaigners have been protesting for about a week.
The latest wave of anger has been closely linked to the eviction of 87-year-old Maricarmen Abascal from her Madrid home. She had lived in the apartment for roughly seven decades and was carried out of the building on a stretcher during the eviction. Housing campaigners said an investment company that acquired the property sought to increase her rent by 275 percent. Following the public backlash, the new owners agreed to allow her to return at a low rent.
Her case became a powerful symbol for housing campaigners who argue that long-term tenants are increasingly vulnerable in a market where rents and property prices have risen sharply. The government moved to introduce emergency measures after protests spread following the eviction.
The rejected package included an extension of rental contracts when they expired and additional restrictions on evictions involving vulnerable people without alternative accommodation. It also contained measures targeting so-called vulture funds, a term commonly used by critics for investment firms that purchase properties with the aim of generating higher returns.
Other measures that fell with the defeated decrees included a proposed 2 percent annual limit on rent increases for existing contracts until the end of 2027, rules affecting seasonal and room rentals, tax incentives for landlords who reduce rents and possible higher local taxes on some tourist apartments and long-term vacant properties. A proposed state-backed first-home financing programme was also among the measures that will not take effect following the votes.
A second decree focused more specifically on rental contracts. It would have introduced longer automatic extensions under certain conditions and required landlords who refused to renew a contract without a justified reason to compensate tenants. The proposed compensation would have been equivalent to 12 months of rent.
The government needed support from several parties because Sanchez’s Socialist-led administration does not have a parliamentary majority. Junts, the Catalan pro-independence party whose votes were important to the government’s plans, opposed the measures, arguing that they were not sufficiently rigorous.
The defeat has also increased political pressure on Sanchez. The next general election is currently scheduled for 2027, but the failure of the housing measures has renewed debate over whether the minority government can remain in office until then. Popular Party leader Alberto Nunez Feijoo called on Sanchez to hold an election as soon as possible, arguing that the prime minister no longer had the support of either parliament or the streets.
Este Gobierno no va a dar un paso atrás en su lucha por el derecho a la vivienda.
Los decretos que hemos presentado sirven para frenar la especulación, facilitar el acceso a la primera vivienda, fomentar los alquileres asequibles y frenar los desahucios, como hemos visto hoy…
— Pedro Sánchez (@sanchezcastejon) October 1, 2026
Housing has become one of Spain’s most persistent domestic concerns as demand continues to outpace supply in many parts of the country. According to property website Idealista, average rents have nearly doubled over the past decade, while asking prices for homes have increased by about 90 percent.
The scale of Saturday’s demonstrations underlined how far the issue has moved beyond individual disputes between landlords and tenants. In Madrid, organisers estimated that about 500,000 people joined the protests, while authorities put the figure at around 70,000, illustrating the substantial difference between estimates from organisers and officials. Protesters called for stronger housing protections and some demanded a general strike.
The protests are now putting housing policy and the government’s ability to respond to the crisis at the centre of Spain’s political debate. For renters facing rising costs, however, the immediate issue remains much more direct: finding and keeping a home in a market where housing costs have risen far faster than many households can comfortably absorb.
