Spanish Government Approves Housing Decrees on Renewals and Vulture Funds

The Spanish Government approved two housing decrees on September 29, 2026, mandating the automatic renewal of tenancy agreements and prohibiting vulture funds from buying flats until 2028, according to Ministry of Housing sources speaking to RTVE Noticias. Parliament was asked to hold an extraordinary plenary session on Friday to approve the measures.

Spain Housing Decrees Target Automatic Renewals and Vulture Funds

The Council of Ministers advanced two distinct legislative texts to tackle housing access issues. The first text outlines a ban on evictions until 2030 and a two-year extension of existing contracts expiring before December 31, 2028. The second text explicitly mandates the automatic renewal of tenancy contracts. The decrees also regulate seasonal and room-by-room lettings.

These measures respond directly to demands from Sumar and the Tenants’ Union. The Tenants’ Union organized a protest camp at Puerta del Sol, successfully elevating Maricarmen’s eviction into a national symbol for housing access struggles, as reported by RTVE Noticias.

Spain: Automatic tenancy renewals, vulture funds flat ban
Photo: europesays.com

Political Divisions and Coalition Negotiations

The automatic and open-ended extension of tenancy agreements served as the primary stumbling block in the final hours of negotiations. Sumar pushed for renewals to mirror permanent employment contracts, meaning landlords could not terminate leases without a valid reason if tenants paid rent. However, the socialist wing (PSOE) favored a capped extension ending in 2028, fearing that open-ended renewals would alienate coalition partners PNV and Junts, thereby risking the congressional majority needed to pass the decree.

Meanwhile, the proposed ban on property purchases by vulture funds faced fewer political hurdles. While complex legal implementation details remain unspecified, Junts actively put forward property purchase limitations during the negotiations.

Frequently Asked Questions About Spain’s New Housing Decrees

What do the new Spanish housing decrees include?

The decrees mandate the automatic renewal of tenancy agreements, ban vulture funds from buying flats until 2028, extend existing contracts due to expire before December 31, 2028, by two years, ban evictions until 2030, and regulate seasonal and room-by-room lettings.

Who pushed for the automatic tenancy renewals?

According to RTVE Noticias, the automatic extension of tenancy agreements was a core demand pushed by Sumar and the Tenants’ Union.

When does the government expect parliamentary approval?

The Ministry of Housing asked Parliament to hold an extraordinary plenary session on Friday to approve the two housing decrees following their approval by the Council of Ministers.