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PROPERTY

Spain’s Andalusia to pass new regional housing law in 2025

The regional government in Andalusia wants more action and less bureaucracy to try and rectify the rising demand and dwindling housing supply in the southern region. Here's what we know so far about its "shock plan" for rent and property.

Spain's Andalusia to pass new regional housing law in 2025
Juanma Moreno speaks in Seville in 2019. Photo: CRISTINA QUICLER/AFP.

The President of Andalucía, Juanma Moreno, has announced that his region will move forward with its own new Andalusian Housing Law some time in the first half of 2025, which among many measures will include a “shock plan” to provide 20,000 new subsidised housing units for rent in five years.

Moreno was joined by Spain’s Minister of Housing and Urban Agenda, Isabel Rodríguez, and the Mayor of Málaga, Francisco de la Torre, at the fourth edition of the National Housing Congress in Málaga, where he presented the plans. 

The thrust of the law seems to be more action and less bureaucracy. “Governments are now more of a problem than a solution,” Moreno said, acknowledging bureaucratic slowness and the inaction of the state in recent years.

In big Andalusian cities like Seville, Málaga and Granada, the price of rent has skyrocketed in recent years and locals are increasingly priced out of the market. Short-term tourist rental properties have grown exponentially in the post-pandemic period, something that has cut supply and caused prices – whether rental or to buy — to rise.

READ ALSO: Renting a room in Spain costs 90% more than in 2015

The problem of access to affordable housing is a situation that “we all have to solve together,” Moreno said, referring to cooperation between regional governments and the national government, as well as provincial and local councils.

Spain’s national government is a left-wing coalition led by Prime Minister Pedro Sánchez’s Socialists (PSOE) while Andalusia and most regions of Spain are run by the right-wing Partido Popular (PP). 

For this reason, Moreno committed to working despite “the political differences” and offered the Minister open “dialogue” to “overcome obstacles” and make progress on a “common objective”. Rodríguez, for her part, called for a “national alliance” built on “empathy and social complicity”.

“We must have the firm determination to put the general interest above any other interest,” Moreno added.

Since the passing of Spain’s Housing Law in 2022, right-wing regions have criticised the Sánchez government for inadvertently worsening the rental market, while Socialists have blamed regional governments for not properly implementing the law.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

While outlining the plans, Moreno committed to identifying and using land at an affordable price and increasing supply by making more housing subsidies available, as well as creating priority areas in towns and cities where access is most difficult, and taking steps to better target government aid, which he says is currently “very dispersed”.

Moreno pointed out that Andalusia has its own housing policy model to facilitate both construction and access and the plan seems clear: to build. The President stressed that the Andalusian government is already working to remove bureaucratic barriers and get shovels in the ground because “the more there is on the market, the easier it is for prices to fall.”

According to Moreno, a lack of construction is the root of the problem in failing to address the disparity between supply and demand. He cited statistics from the Banco de España estimating that demand in the region is at around 90,000 homes.

“Between 2014 and 2018, just over 3,200 subsidised homes were built in the entire Andalusia region, a low level that we are trying to reverse by tripling it in the last five years to reach more than 10,250 subsidised homes,” Moreno said. 

READ ALSO: Rent in Spain’s big cities now over €1,000 a month

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PROPERTY

Spain’s plan to limit temporary accommodation rejected

Spain's left-wing government had planned to tighten its grip on temporary accommodation rentals as a potential means of making more long-term rentals available, but the country's right-wing parties on Tuesday rejected the proposal in parliament.

Spain's plan to limit temporary accommodation rejected

If passed, the new law would have meant that anyone who wanted to temporarily rent a property would have to explain why and provide a valid reason.

For example, students or researchers would have to show the research contract or course booking to show it would only last a few months.

It would have also meant that if more than six months passed or more than two consecutive contracts issued, it will have automatically become a long-term habitual residence instead.

On Tuesday September 17th, the proposal was ultimately rejected in the Spanish Congress, voted against by Spain’s three main right-wing parties – Catalan nationalists Junts, Spain’s main opposition party the PP and far-right Vox.

The aim in part was to try and rectify the controversial Housing Law, which came into effect in 2023.

In most people’s eyes, the legislation has failed as landlords have found several loopholes to get around the restrictions, prices have continued to increase and the stock of rental properties is even more diminished.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

As a result of the fear of heightened regulation for landlords, many have left the traditional market and turned to tourist rentals or temporary accommodation instead, which are far more lucrative. 

This has had the opposite effect, increasing rental prices instead of stabilising or decreasing them.

READ MORE: Why landlords in Spain leave their flats empty rather than rent long-term

Seasonal contracts and room rentals allow landlords to raise prices every six or nine months and they not subject to the price limitations of the housing law.

The idea of this new law was to try and set the maximum duration of a temporary rental contracts at six months in order to avoid this, but it could have potentially also caused problems for many who need this type accommodation such as students, digital nomads, those living here on a short term basis etc. 

During the debate, Sumar’s spokesperson, Íñigo Errejón, defended the law saying that it is a “solvent”, “fair” and “precise” proposal, which will help “correct an abuse” and “close the gap through which “Landlords can use to avoid the LAU (Urban Leasing Law) and rent regulation”.  

Far-left party Podemos blamed the ruling PSOE for having left this “hole” in the housing law, but also agreed that the restrictions on temporary accommodation were needed to try and rectify this.

READ ALSO: Has Spain’s Housing Law completely failed to control rents?

Junts (Catalonia’s main pro-independence party) and the PNV, the Basque nationalist party, were firmly against it. They agreed that the problem must be solved and that “accessible decent housing was needed”, but raised the situation of students, interns, residents or workers who need housing for flexible periods.

Junts party member Marta Madrenas warned of the harmful effects that this limitation on temporary rentals can have for university cities such as Girona.

Vox and the PP meanwhile argued that they don’t want to help cover up the mistakes made by the left with regards to the Housing Law.

Vox deputy Ignacio Hoces stated that the increase in seasonal rentals has occurred due to the “failure” of the Housing Law, since this has caused rental prices to “skyrocketed” by 13 percent and the supply to be reduced by 15 percent.

Temporary accommodation, referred to as alquiler temporal or alquiler de temporada in Spanish, is considered to be anything that’s longer than a month but shorter than a year, middle ground between short-term and long-term rentals. It is also referred to as monthly accommodation or seasonal accommodation.

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