Elections in Spain: a threat of a housing revolution?

A housing revolution is taking place in Spain. On May 26, a new historic housing law came into effect. This was the result of years of work aimed at establishing housing as a fundamental human right. However, this goal is now under threat. Two days after the law was passed, right-wing parties won seats in local and regional elections. Last week, Spanish Prime Minister Pedro Sánchez announced early elections. On July 23, when Spain goes to the polls, the fate of this law will hang in the balance.

The origins of this law

The origins of this law go back decades. In 1956, José Luis de Arrese, who became the first Minister of Housing under Franco, stated that Spain should transition from a "country of tenant workers to a country of homeowners." Governments encouraged home ownership at the expense of renting. This led to the emergence of a new category of housing stock - "subsidized housing." Unlike regular public housing, subsidized housing is funded by the government and offered for sale at an affordable price. After 30 years, it can be sold on the open market.

Housing crisis

The first cracks in this model became visible in 2008. During the global real estate crisis in Spain, a wave of evictions began. Many people who lost their homes started renting. The demand for an unprofessional and poorly regulated private rental market in the country skyrocketed. Rents increased by 51.4%, while wages rose by only 3.4% over the decade. As a result, Spain has the highest level of housing cost overburden in Europe, with housing costs exceeding 40% of income.

Housing revolution in Barcelona

It was in Barcelona that the housing revolution was born. Ada Colau, a tenants' organizer, was elected mayor in 2015. Since then, the city has changed its approach to housing policy. Instead of passively observing the market, the government intervened to ensure affordable, sustainable, and eco-friendly housing for everyone. In Barcelona, the amount of public housing has doubled, and most evictions have stopped.

Prospects of the new law

If this law is passed, it will be a turning point. It will prevent the privatization of state housing and set a goal of creating 20% more social housing over the next 20 years. Protection for vulnerable tenants will be strengthened, and owners of vacant homes will be taxed. The law also includes new tax incentives for owners who lower prices or offer long-term rentals. The most significant aspect will be the introduction of provisions for national rent control, which Barcelona has committed to adopt. Although the law is not perfect - there are loopholes for owners of tourist or seasonal housing, and regional governments may opt out of some provisions.

Uncertainty of the future

Nevertheless, this is a radical step that guarantees the right to housing and develops the housing system as the foundation of a social state. However, a question mark arises regarding its fate. After the elections on May 28, supporters of right-wing parties gathered in the squares, and the future of the Barcelona government became increasingly uncertain. If the right-wing party gains control of the municipality, their achievements in housing may be reversed. Is the revolution interrupted? We will only find out after the election results are announced.