Congress likely to reject housing decrees, risking their repeal and political fallout

The Congress is set to reject two housing royal decree-laws after Junts, the PP, Vox and UPN all voted against them, stripping the government of the required majority. Both decrees, issued by the Consejo de Ministros and published in the BOE, have only been in force for a few days, introducing measures such as a two-year lease extension, a 2% rent update cap, regulation of seasonal rentals, suspension of certain evictions of vulnerable people, limits on fund purchases of housing, and a tax deduction for low-income renters.

The second decree would have created automatic five-year lease extensions for private landlords. Under the Constitution, a negative vote within thirty days leads to immediate repeal, with no retroactive effect on contracts signed during the brief period, though jurists warn of legal insecurity. The loss of these provisions could roll back recent tenant protections. In response, the prime minister is said to be considering dissolving the Cortes and calling an early general election.