Spain freezes rents until 2028: key points of the decree

Rent freeze until 2028: real measure or propaganda?

The latest deal between Spain's PSOE and Sumar includes an extraordinary extension of up to two years for tenants whose contracts expire before 30 June 2028. During that period, the rent is frozen at its current price, with no possibility of an increase, not even in line with CPI. The measure affects around 1.5 million households, nearly 4 million people, according to the agreement's figures. But the devil is in the details.

What does the decree say and who does it protect?

The freeze only applies during the extension, not to new contracts. The tenant must request it and the landlord cannot refuse. In addition, monitoring of seasonal and room rentals is being tightened to prevent fraud, and VAT is raised to 21% on some transactions. In theory, it is a safeguard for those who already have a contract. But critics point out that it does not address the supply problem: without building public housing, pressure on prices for new tenancies will keep rising.

An uncertain path through Congress

The agreement has taken the form of a decree-law that the Government wants to pass this week. However, its approval in Congress is anything but certain. Junts and PNV have already voiced reservations: Puigdemont's party antiestéticars backlash among its voters, many of them small landlords. The PP and Vox will vote against. If a majority is not achieved, the measure will lapse within a month and would only affect renewals in July and August. Scepticism prevails: some see it as an electoral gimmick.

The side effects of the freeze

Experience in cities with rent controls is not encouraging. In Bilbao, after the Basque regulation, the market lost almost a third of its long-term rentals; 57% of the current supply is temporary. The implicit message to landlords is clear: raise the price as soon as possible or withdraw the property from the market. Large funds such as BlackRock are already selling properties in stressed areas. Meanwhile, 70.6% of Spanish households own their main home, according to Banco de España, but the generational gap is huge: among those under 45, the ownership rate drops to 30%.

Two irreconcilable visions

On one side, those who defend state intervention as the only remedy against soaring prices. On the other, those who point out that rent controls have always reduced supply and created parallel markets. The debate echoes the old scheme of legacy rents: a few privileged tenants with protected contracts versus a majority left out in the cold. The open question is whether the Government will secure the necessary support or whether this decree will join the long list of announcements that never came into force.