Key points of the new housing legislation in Spain and Europe

Access to decent housing is becoming one of the most structural social challenges in Europe and the State of Spain, in the face of the real estate market crisis and the high prices of rent and purchase. Institutional concern has translated into new legal frameworks and reform proposals aimed at strengthening tenants’ rights, curbing abusive practices, and expanding the supply of affordable social housing.

At the European level, the institutional debate led by the European Parliament calls for greater oversight and action to prevent abusive practices in the rental market and ensure decent living conditions for tenants, in a context where the housing deficit far exceeds demand.

In the State of Spain, Law 12/2023, of 24 May, on the right to housing establishes for the first time a general regulatory framework to promote access to adequate housing, regulate rental prices in so-called “stressed areas,” and encourage market transparency. Measures include tax incentives for landlords setting rents below the reference index, the definition of large property holders with specific obligations, and the expansion of the public and protected housing stock.

Furthermore, various regional administrations are developing complementary regulations aimed at combating speculation and reinforcing the social function of housing. Examples include Decree-Law 2/2025 in Catalonia, which modifies preemption and buy-back rights for large landlords and encourages penalties for empty properties, as well as measures to sanction violations of rental caps set by law.

The national regulation of rent updates through a reference index is another key mechanism to prevent disproportionate rent increases and protect the balance between landlords and tenants.

Overall, these rules and measures aim to establish a more equitable housing policy, strengthening tenants’ rights, limiting abusive rents, and promoting access to social housing. Yet the reality is that, in a context of growing financial speculation, the effective guarantee of the right to a decent home can only be truly achieved through social mobilization, organized pressure, and policies that put people’s interests above capital profits.

📸Demonstration for the right to housing 09/02/2025. Source: FRAVM Madrid

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