Housing decree draft sparks clash between PSOE and left-wing partners over rent reforms

The government’s housing decree, intended to divert attention from Ceuta and restore a parliamentary majority, has become a flashpoint between the PSOE and its coalition partners. Left-wing allies Sumar, ERC, Bildu, BNG and Podemos are urging a “maximum” decree that would automatically renew leases, ban evictions and freeze rent hikes, echoing calls from the Sindicato de Inquilinas. Pedro Sánchez is squeezed between these demands and the red-line of right-wing partners Junts and the PNV, who favor a more tempered proposal.

A leaked draft shows tax breaks for landlords who keep rents stable, incentives for first-time buyers, and a ban on speculative investment-fund purchases, but it excludes a land-law overhaul and expropriation provisions championed by Yolanda Díaz. Ministers such as Mónica García warned that without the full suite of measures the coalition could block the decree, as happened with earlier housing laws that were later repealed.