Listen: Did the Spanish government address the protesters’ demands on housing?

Production: By Europod, in co-production with Sphera Network. EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms. Find the full transcript below: Hundreds of people were still camping yesterday at Puerta del Sol in Madrid. They were demanding action on housing, as rents and property prices continue to rise. Following an outcry triggered by the eviction of an 83-year-old woman from her home, and the mobilization of thousands of people across Spain, the government adopted two housing decrees. Did they take the protesters’ demands into account? MariCarmen Abascal had lived in her apartment since the 1950s, having inherited the lease from her parents. But the property was bought by an investment fund, which then challenged the validity of her lease and quadrupled her rent. Last week, MariCarmen was evicted from her home. The eviction sparked widespread outrage and led hundreds of protesters to camp in central Madrid, calling for action. Yesterday, she was finally allowed to return home after reaching an agreement with the owners. Aside from MariCarmen’s case, the demonstrations are largely driven by young people who are fed up with rising rents and property prices, especially in major cities such as Madrid and Barcelona. In Madrid, property prices have risen by around 87 percent over the past ten years. That’s less than in Portugal or the Netherlands, where prices have increased even more. But it’s still a significant rise, especially as wages have grown much more slowly over the same period. Rents are taking up a huge share of people’s incomes. In Madrid, they account for almost half of tenants’ net income on average. So, how did the Spanish government respond? Yesterday, it adopted two housing decree-laws. The first decree would suspend evictions until 2030 and automatically extend existing rental contracts by two years. It would also introduce tighter rules on seasonal rentals and prevent speculative investment funds from acquiring housing until 2028. The second decree is more ambitious. It would allow tenants to extend their future rental contracts indefinitely. This is what the tenants’ union has been calling for. Landlords would no longer be able to end a lease simply because it had reached its expiry date. Tenants who pay their rent and respect their legal obligations could remain in their homes for as long as they wish. This would also limit rent increases, since rents can only be raised moderately during an existing contract. So, the government has taken the protesters’ demands into account. But there is still a major obstacle: as our Spanish partner El Salto reports, the tenants’ union fears that this second measure may not pass through Parliament. That could explain why the government adopted two separate decrees. The first is considered easier to get through Parliament. Now, what about the EU’s proposals to tackle rising rents? We discussed them earlier this month. One of the main proposals concerns short-term rentals. The idea is to introduce restrictions, particularly in tourist areas where housing is under strong pressure. By bringing more homes back onto the long-term rental market, the Commission hopes to ease pressure on prices. But these proposals have not yet been adopted, so we’ll have to wait and see what impact they have. And in any case, more will need to be done at national level. Even if prices stop rising, they are already so high that many workers can no longer afford to live in major cities. More social housing is needed, as well as more renovation. Increasing the supply of decent, affordable homes could help ease pressure on rents and property prices.