Lorraine Williamson
Spanish Prime Minister Pedro Sánchez has introduced a 12-point reform plan to address the growing crisis in Spain’s housing market. The initiative prioritises increasing affordable housing, tightening tourist rental regulations, and curbing property speculation.
Central to the plan is a significant boost to social housing. Spain lags behind many European countries in this area, with countries like the Netherlands and Austria providing successful models. Sánchez has pledged large-scale investment in affordable rental properties, aiming to stabilise prices in the private rental sector.
The government’s research highlights the root causes of the problem: rising prices, limited supply, and the inaccessibility of housing for young people and low-income households. Sánchez reinforced the urgency of the issue, citing the Spanish Constitution’s guarantee of the right to dignified housing. “Housing is a fundamental right, not a financial product,” he stated.
New rules for tourist rentals
Tourist rentals, especially in urban centres, coastal regions, and rural areas, have reduced housing availability for local residents. The rapid growth of this sector has inflated prices and exacerbated the affordability crisis. The government plans to introduce national regulations, though implementation will largely depend on regional and local authorities.
Tackling speculative investments
The plan also aims to limit speculative property purchases. Large investment funds and foreign buyers often acquire entire buildings, driving prices higher. Sánchez has already abolished “golden visas,” which granted residency to individuals buying property worth over €500,000. Now, the government intends to impose stricter controls to curb speculation.
A clear divide: PSOE vs PP
Sánchez’s housing policy diverges sharply from that of the opposition Popular Party (PP). While the PSOE advocates for public investment and tighter regulation, the PP favours tax cuts and deregulation. Critics argue that the PP’s approach echoes policies from the 1990s under José María Aznar, which led to a property bubble, mass evictions, and significant financial losses. Sánchez’s plan aims to avoid repeating this history.
Also read: Political Party PP wants incentives to revitalise empty homes for rental market
Support for renters and young people
The government also plans to use vacant homes by offering tax incentives to landlords and safeguards against non-payment. This measure is designed to help young people and low-income renters access affordable housing.
Looking ahead
The effectiveness of Sánchez’s measures will become evident in the coming months. With housing shortages and rising costs among the top concerns for Spaniards, the issue is poised to remain a major political battleground. The ideological divide between the PSOE’s emphasis on regulation and public investment and the PP’s reliance on free-market principles underscores a broader debate on Spain’s housing future.