Government avoids new housing measures in 2025 plan despite public concern

Sunday 20 April 2025 - 15:10

By: Zahouani Ilham

Government avoids new housing measures in 2025 plan despite public concern

The Spanish government has decided to avoid introducing new housing measures in its 2025 agenda, despite widespread concern over housing affordability. Prime Minister Pedro Sánchez had previously promised that his term would focus on housing, and Minister Isabel Rodríguez welcomed recent citizen protests demanding easier access to housing. She stated that "homes should be for living, not for speculation." However, despite pressure from left-wing coalition partners, no new housing initiatives are planned for the coming year, except for the approval of the 2026-2029 State Housing Plan, which aims to expand public housing to 9% of the total.

This decision is reflected in the 2025 Annual Regulatory Plan, approved by the Council of Ministers, which outlines the government's legislative priorities for the year. According to the latest CIS barometer, housing access remains one of the top concerns for 28.8% of Spanish citizens. This issue has also sparked several large public demonstrations in recent months, including one just weeks ago, with marches across the country.

For the upcoming year, the government’s housing agenda focuses mainly on the approval of a decree to continue housing aid programs and re-evaluate housing policies. This measure is not new, as the drafting of the State Housing Plan for the next three years began in mid-2024, with Rodríguez promising to increase public housing to 9% of the total.

The multi-year plan often includes measures that have already been in place for years. For example, the 2022-2025 program’s largest allocation of funds goes to the Rental Assistance Program, which provides direct subsidies of up to 50% of monthly rent for low-income individuals. Between 2022 and 2024, the Housing Ministry mobilized 1.717 billion euros for housing policies, with 1.44 billion coming from the central government.

The government's refusal to introduce new housing measures has led to frustration among its left-wing partners, who have been pushing for more aggressive action. The housing issue remains a point of division within the coalition, particularly between the PSOE and Sumar. Sumar has suggested modifying the law to restrict public housing funds to regions implementing rent caps, but this proposal has been ignored by the PSOE. Furthermore, Sumar has also called for changes to rental contracts, including making leases indefinite, and banning property purchases in high-demand areas unless they are for primary residence or affordable rental purposes.

Other proposals include those from Podemos, who suggest that only individuals, not companies, should be allowed to buy properties in high-demand areas. These homes would have to be either occupied by the owner or a family member and could not be rented out or left vacant for four years to reduce speculation.