Spanish government suffers legislative defeat on housing reforms amid protests

On October 2, 2026, the Spanish Parliament rejected two legislative acts aimed at addressing the national housing crisis. Proposed by Prime Minister Pedro Sanchez’s government, the measures sought to introduce automatic lease renewals and protections for vulnerable tenants against evictions, specifically targeting aggressive "vulture funds" that purchase properties for profit. The legislation was defeated by a vote of 178 to 172, following intense public pressure triggered by the eviction of 87-year-old Maricarmen Abascal, who was forced from her home of 70 years due to drastic rent increases.

The defeat is a significant blow to the Sanchez administration, which lacks a parliamentary majority. Opposition parties, including the People's Party, Vox, and the Catalan nationalist group Junts, voted against the measures. Alberto Nunez Feijoo, leader of the People's Party, used the opportunity to call for snap elections, arguing that the government has lost both popular and parliamentary support after eight years in power.

Following the vote, protesters gathered outside the Parliament in Madrid, where activists have been camped at Puerta del Sol for a week, chanting against the outcome. Tenant unions have called for further large-scale demonstrations in Madrid and other cities to continue their fight for housing rights, while political analysts speculate that the government's instability could lead to early elections.