Spain Takes Urgent Action to Address Housing Crisis with New Government Measures

Spanish Prime Minister Pedro Sánchez has announced a series of urgent and decisive measures to tackle the housing crisis in Spain, amid rising rental prices and a shortage of available housing.

The new measures, revealed by Sánchez during the inauguration of a major public housing project in Madrid, include a package of financial and regulatory policies aimed at supporting tenants and encouraging landlords to renew leases without rent increases.

Among these measures is a full 100% tax exemption for landlords who extend rental contracts without raising the rent, in an effort to stabilize rental prices in high-demand urban areas.

Sánchez also stated that his government will tighten oversight of short-term rental agreements and room settlements, introducing rent caps in areas experiencing sharp increases, aiming to curb what he described as “exploitative practices” driving up housing costs.

This move comes as the Spanish housing market faces a severe shortage of available units and rent hikes that outpace household income growth, increasing political and social pressure on the government to provide swift and sustainable solutions.

In addition to tax and rental market regulations, the government plans to expand the supply of public housing through a project to build over 10,000 units at the former Campamento site in Madrid, one of the largest public housing initiatives in the country.

These measures come amid ongoing public and community demands for fundamental solutions to provide affordable housing, with expectations that the housing sector will remain a key issue influencing Spain’s political and economic landscape this year.

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