The Spanish Congress Rejects Urban Leasing Law Reform

In a dramatic session at the Spanish Congress, Junts sided with PP, Vox, and UPN to obstruct a legislative proposal from the left-wing allies of PSOE, which aimed to amend the Urban Leasing Law and impose restrictions on seasonal and room rentals. Initially, Junts had indicated they would abstain, but they changed their minds at the last minute and opted to vote against it. This led to a narrow defeat for the proponents, with 178 votes against the reform compared to 172 in favor, cast by a coalition including PSOE, Sumar, ERC, Bildu, PNV, Podemos, BNG, Coalición Canaria, and José Luis Ábalos, a former Socialist deputy now part of the Mixed Group.

The proposed reform aimed to align the terms of temporary contracts with those of standard residential leases, with the goal of deterring abuses that circumvent housing laws or cause continuous rent increases. A crucial aspect of the reform was the introduction of Article Two, which aimed to strengthen tenant protections by regulating the conditions under seasonal contracts to resemble those of long-term residential leases.

A significant feature of the proposed changes was Article Nine Bis of the Urban Leasing Law, which stipulated that seasonal contracts could not exceed six months in duration. Should a contract exceed this limit, or if more than two consecutive contracts are signed, it would automatically be treated as a standard residential lease, subjecting it to stricter regulations.

Moreover, the amendment sought to empower tenants in temporary contracts by allowing them to terminate their agreements after a minimum of one month, provided they give ten days' notice to their landlords, without any financial penalty.

Reflecting on these developments, Katya Moshnikova from Urbane International Real Estate commented: "While there is no doubt that there are some issues that need to be addressed within the rental market, what we have seen in the last few years is that attempts to legislate in this area have only made the situation worse, perhaps due to solutions biased towards tenants and regarding landlords as the problem. This only leads to landlords withdrawing their properties from the market. We look forward to more balanced solutions in the future."