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Sánchez once dismissed rent-control proposals now pushes sweeping housing reforms

Pedro Sánchez recalled rejecting market-intervention ideas on rentals in 2019, yet his government is now advancing decrees that ban evictions until 2031 and cap rent hikes.

During a 2019 broadcast with Julia Otero, Pedro Sánchez described rental-market interventions suggested by Podemos as unworkable and harmful to property owners. Fast forward to this week, his government unveiled two urgent housing decrees: the first bans evictions until 2031 and caps annual rent rises at 2%; the second automatically renews leases for two years and grants tenants compensation of up to twelve months. Internal messages later revealed Sánchez had previously labeled a comparable policy a "deal for squatting" before signing it into law.

The measures were passed by the Council of Ministers after a brief debate. The shift illustrates a significant reversal from Sánchez's earlier stance on rental regulation.

Why it matters

It shows a major policy reversal on housing, affecting landlords, tenants and the rental market in Spain.

In this story

rental marketeviction banrent caphousing decreespolicy reversalSpanish government
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