Reports suggest Spanish prime minister Pedro Sánchez may call an early election following public discontent over spiralling rents and prices after his housing bill was rejected by parliament. Mass protests were sparked by 87-year-old Maricarmen Abascal, who faced eviction when her rent-controlled flat was bought by a corporate landlord seeking higher rent. Much anger targets “vulture funds,” prompting Sánchez’s party to propose banning large-scale investors from buying homes until 2028.
However, deeper issues persist. In the UK and Ireland, protesters oppose evictions by local councils moving rent-controlled properties to new low-income tenants. These cases highlight acute housing shortages.
Landlords raise rents only when confident of finding paying tenants, with bidding wars fueled by scarcity. Spain has built fewer homes per capita than most high-income countries over the past decade, leaving over 50% of young adults living with parents. Rents have risen sharply, exacerbated by population growth from immigration and demand from tourists and digital nomads.
The government’s proposals—tenant protections and investment bans—address symptoms, not root causes. Greater housebuilding, potentially funded by tourist taxes, is needed alongside supply-side reforms.
Source: Financial Times Companies · Summarized by HeadlinesBriefing