Spain's Council of Ministers Approves Measures to Support Property Owners and Transform Housing Sector

On December 9th, the Council of Ministers in Spain approved two significant initiatives aimed at enhancing housing security and transforming the public housing sector. The first measure is a Royal Decree designed to protect property owners from issues related to tenant nonpayments, especially for young renters and vulnerable families. This initiative, which has been championed by the political group Junts, is a response to one of the major concerns of property owners and aims to provide financial security and reassurance. The core of this measure involves economic coverage by the autonomous communities for property owners renting homes to individuals under the age of 35 or to those considered vulnerable. Once a contract is signed between the owner and the tenant, stipulating a rent below a specified index and the necessary legal security deposit, the owner becomes eligible for compensation in cases of rent nonpayment or property damage. This initiative targets owners who are compliant with their tax and social security obligations, providing them peace of mind as they navigate potential risks associated with renting. In addition to this protective measure, the Council of Ministers has also promoted the transformation of the Sepes State Housing and Land Entity into a new public company called CASA47. Announced by Minister of Housing Isabel Rodríguez, CASA47 aims to centralize all processes related to public housing, from land acquisition and planning to the final delivery of keys to tenants. Rodríguez characterized this initiative as a vital infrastructure supporting the right to dignified housing, positioning it as a cornerstone of Spain’s welfare system. CASA47 will ensure that all public housing remains affordable and accessible. To bolster this initiative, the government has designated €100 million to expand the public housing stock in Spain. A key aspect of CASA47 is that no tenant will need to allocate more than 30% of their average income toward rent. This reflects the government's commitment to creating stable and affordable housing contracts for lower-income families. Under the CASA47 plan, the government aims to assist about 60% of the population with incomes ranging from 2 to 75 times the Public Indicator of Multiple Effects Income (IPREM). Individuals earning below this threshold will qualify for social housing, ensuring that the support system is robust yet fair. Starting in 2026, an online portal is set to be launched to streamline the housing allocation process, allowing prospective tenants to access information about available units and their respective requirements easily. Furthermore, CASA47 plans to offer rental contracts that can last up to 75 years, with the possibility of continuous extensions as long as renters meet the essential conditions. The process is divided into two phases: the first component will involve a 14-year contract, with the second phase incorporating automatic extensions of seven years, provided compliance with the stipulated access conditions remains intact. These newly approved measures reflect the government’s proactive approach to tackling housing issues in Spain, addressing the needs of both property owners and tenants, while ensuring that affordable housing is a fundamental right for the citizens. Related Sources: • Source 1 • Source 2