The idea behind this new package of measures is clear: to open up the rental market, which remains too small and expensive, and provide some relief to those seeking decent housing - especially young people and families looking for stability. Sánchez summed it up succinctly: “We will support those who guarantee decent housing and we will stop those who speculate.”
The housing problem in Spain persists. There is little supply, too much demand, and prices remain sky-high, both for buying and renting. For some time now, the Government has been trying to protect tenants through various measures. Now, Sánchez has gone a step further: if a landlord maintains the rental price, they will receive a full income tax rebate. In other words, the Tax Agency will refund what they would have earned had they raised the rent. It's that simple.
This proposal is part of a broader package aimed at easing the rental market. The decree-law will arrive in the coming weeks, and it includes another new feature: limiting rental prices by the room. According to the new regulation, renting a room cannot cost more than renting the entire property.
Sánchez insists: the rental market must be addressed “urgently and decisively.” The Ministry of Housing estimates that, with these measures, some three million households that rent will benefit.
The government reiterates: everyone wins. Tenants, because they can stay in their homes without fear of unexpected rent increases. Landlords, because they don't have to look for new tenants or lose income. And, according to Sánchez, all of society wins, because public resources must be at the service of people's well-being. He said this during the groundbreaking ceremony in Campamento, Madrid.
The figures from the Ministry of Housing speak for themselves. Landlords who maintain rental prices will receive tax compensation equal to what they would have earned by raising them. This measure will affect approximately 600,000 rental contracts, which will be subject to review in 2026.
In short, the new decree-law will implement a system of tax incentives through the Personal Income Tax (IRPF). The objective? To curb price increases in rental renewals. Every year, hundreds of thousands of people renew or sign contracts in an increasingly complex market. With these incentives, the Government aims to encourage the signing and renewal of more stable and affordable rental agreements, expanding the supply and providing security for those seeking a home.
But it doesn't stop there. The government is also targeting seasonal rentals, which have recently been used to circumvent the law and engage in speculation, especially in major cities. In Madrid, the supply has tripled in a year. In Barcelona, Cádiz, and San Sebastián, seasonal contracts now constitute the majority of listings. The Government wants to put an end to unstable contracts, exorbitant annual rent increases, and fraud. There will be price controls in high-demand areas and penalties for those who do not comply with the new regulations.
With this, the Government is responding to one of the strongest demands of neighborhood associations and those who defend the right to housing.
Furthermore, they will put limits on abuses in room rentals.
And thirdly, the Government is going to bring order to the room rental market. They want to prevent apartments from being subdivided simply to circumvent rental laws and charge more. To curb this abuse, the same guarantees that already exist for standard rentals will also apply to room rentals, and the total price of all rooms cannot exceed the price of a single apartment. In addition, in areas that the Government declares to be high-demand, room rentals will also be subject to price controls, as established by the Housing Law.
Regarding Operation Campamento in Madrid: Pedro Sánchez and Isabel Rodríguez announced that the royal decree-law will be approved soon, just as they were launching the construction of this enormous project. Thus, an idea that has been circulating since 1989 is finally being unlocked. The new Campamento neighborhood will have 10,700 affordable public housing units, protected against speculation. This initiative is being spearheaded by Casa 47, the new State Housing Entity.
With these measures, which still need to be approved by Congress, the Government is moving forward with its plan: to expand the housing supply, regulate the market, and provide greater protection for both tenants and landlords. Ultimately, it is another step toward addressing the housing access problem and making the right to decent and affordable housing a reality.