Spain’s Bold Move: New Housing Laws to Ban Evictions and Fight ‘Vulture Funds’

The streets of Madrid, Barcelona, and Seville have become the epicenter of a growing social struggle. After waves of protests and a heartbreaking case that captured the nation’s attention, Spain’s coalition government has stepped forward with a series of aggressive measures to tackle the country’s deepening housing crisis.

The Spark: The Case of Maricarmen Abascal

The catalyst for these urgent changes was the eviction of 87-year-old Maricarmen Abascal from her Madrid home. Abascal, who had lived in the apartment since 1956, was forcibly removed on a stretcher, leading to her hospitalization. Her struggle became a symbol of a systemic failure, sparking massive demonstrations and the emergence of protest encampments in the iconic Puerta del Sol.

The ‘Maricarmen Decree’: What Changes Now?

In response to the public outcry, the government, led by Pedro Sánchez and the Sumar alliance, has introduced two decrees aimed at protecting the most vulnerable. These measures are designed to provide immediate relief to over five million people. The core proposals include:

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• Eviction Ban: A temporary ban on evictions extending until 2030.
• Contract Security: The rolling over of rental contracts until 2028 to prevent sudden homelessness.
• Market Regulation: Stricter rules regarding short-term rentals and room rentals to curb speculative pricing.
• Combatting Speculation: A strategic ban on the purchase of residential housing by investment firms, often referred to by the government as “vulture funds.”

A Market in Crisis: The Numbers Behind the Struggle

The social unrest is backed by alarming data. According to the Bank of Spain, the country faces a shortage of approximately 700,000 homes, creating a massive gap between supply and demand.

The economic pressure on citizens is mounting. Data from the National Statistics Institute (INE) indicates that house prices surged by 12.2% in the last year. Meanwhile, rental costs have risen by 8.5% overall, with cities like Madrid and Barcelona remaining the most expensive, often exceeding the monthly pensions of elderly residents.

Political Friction: The Battle for Approval

While the measures have been welcomed by housing activists and the left, they have encountered fierce resistance from right-leaning parties and the center-right Catalan nationalists of Junts. The primary point of contention is the perceived impact on small-scale landlords.

“Lumping together those who have invested their savings in a flat with those managing millions of euros is a mistake,” stated Míriam Nogueras, spokeswoman for the Junts party.

Because the current minority government lacks a full majority in parliament, these decrees must be approved by Congress within 30 days to remain in effect. The political tension remains high as the government attempts to balance the rights of tenants with the property rights of individual owners.

What’s Next for Spain?

For activists and the INE‘s tracked demographics, this is only the beginning. While Maricarmen Abascal has reached a deal to return to her home, the broader battle for affordable housing continues. With more protests planned across the country, the world is watching to see if Spain can successfully transform its housing market from a speculative asset into a basic human right.