Sanchez to address nation after parliament rejects housing reforms

UPDATE - follow-up to Spain PM to make public address after housing measures rejected: office: Spanish Prime Minister Pedro Sánchez will deliver a televised address at 9:00 a.m. on Monday, October 5, 2026, from La Moncloa after his housing relief package was rejected by Parliament on Friday, Oct 2.

What Happened

Parliament voted down the government's proposal to automatically renew tenancy contracts and to limit evictions of vulnerable renters. The defeat came as the Catalan party Junts, whose support the minority coalition needs, voted against the bills. The loss adds to a string of setbacks for Sánchez since taking office in 2018.

Reaction

Thousands marched in Madrid and other cities on Saturday demanding affordable housing. Protesters set up a tent city in central Madrid, still occupied after a week. The protests were sparked by the eviction of 87‑year‑old pensioner Maricarmen Abascal, whose flat was taken over by an investment firm that tried to raise her rent by 275 %. The new owners later let her return at a low rent.

Context

Spain’s housing market has seen rents nearly double and home prices rise about 90 % in ten years, fueling nationwide anger. Minority governments often find it hard to pass reforms, and the opposition Popular Party is currently ahead in polls.