Spain's Sánchez announces 'urgent' measures to tackle housing crisis
Prime Minister Pedro Sánchez on Monday announced "urgent and decisive" measures to address Spain's deepening housing shortage.
The package is set to be enacted in the coming weeks through royal decree, Sánchez said at the inauguration of a public housing project on a former military site in Madrid, where 10,700 new homes are to be built.
The government will crack down on fraud and abuse in rental contracts and create incentives for landlords that benefit long-term tenants, Sánchez said.
The centrepiece of the left-wing government's plan is tighter regulation of tourist and short-term rentals, which Sánchez said have distorted local housing markets. The measures are intended to prevent the abusive practice of reclassifying standard rental agreements as temporary leases.
Measures will also be introduced to curb abuses in room rentals.
At the same time, landlords who extend long-term rental contracts without increasing rents will in future be granted a full tax exemption on the related rental income.
Spain's central bank recently estimated the country's housing deficit at around 700,000 units, which is 100,000 more than in its 2024 estimate.
A royal decree, which supplements existing legislation, does not require parliamentary approval to take effect.