Estate agents report more than 1,500 rental contracts have been put on hold as property owners reconsider their plans following the Government’s latest housing decrees.

A total of 4,235 homes have been withdrawn from Spain’s long-term rental market or redirected towards other uses in just ten days, according to the Federation of Real Estate Associations (FAI).

The figures, gathered from more than 600 estate agencies, point to an immediate reaction among property owners following the announcement of the Government’s latest housing measures. The federation says 88.9 per cent of the agencies surveyed have detected changes in second homeowners’ behaviour.

FAI’s findings also suggest that the disruption extends beyond properties being advertised. A further 1,523 rental contracts have reportedly been delayed or put on hold, leaving prospective tenants waiting to find out whether their agreements will go ahead.

Where have the 4,235 homes gone?

The federation’s survey breaks down the changes reported by estate agents over the ten-day period.

• 2,067 homes were withdrawn directly from the long-term rental market.
• 1,224 properties were redirected towards the sales market.
• 944 homes were switched to seasonal rentals or room-by-room lets.
• 1,523 rental contracts were reportedly blocked or delayed.

The 4,235-property figure combines homes withdrawn from ordinary residential renting with those moved into other uses. It does not mean that all these homes have been left empty or removed permanently from the housing stock.

FAI says the changes have been particularly noticeable among small property owners, some of whom are reconsidering whether to offer their homes under long-term rental agreements.

The survey also found that 72.4 per cent of agencies had experienced delayed or suspended rental contracts. Meanwhile, 56.6 per cent reported owners putting properties up for sale instead of renting them, while 38.9 per cent had seen homes redirected towards seasonal or room rentals.

Rental activity could fall by up to 30 per cent?

FAI warns that the number of completed rental transactions could fall by between 25 and 30 per cent in the coming weeks. That is a forecast from the federation, rather than a confirmed fall in completed rentals. It is based on the combination of properties leaving the long-term market and agreements that have been delayed or suspended.

The association attributes the changes to uncertainty following the Government’s housing decrees, which include measures affecting rental contracts and protections for tenants.

The decrees were rejected by Congress but the Government has sought to revive them through the parliamentary process. The resulting uncertainty has become a concern for property owners and investors trying to assess the rules that will apply to rental homes.

FAI president José María Alfaro has acknowledged the difficulties tenants face in accessing housing and the financial pressure caused by high rents. However, he argues that the measures have also raised concerns among small landlords about protection against unpaid rent and the procedures involved in recovering a property. The survey records what estate agents say they have observed; it does not establish that the decrees alone caused every property owner’s decision.

Investors are also becoming more cautious

The concerns extend beyond individual landlords. A report published by Cinco Días on October 13 said property investors were becoming more cautious following the housing measures and the announcement of a general election for November 29.

The report said some residential investment transactions were being reviewed or potentially delayed. One major transaction under consideration involves a portfolio of around 1,900 rental homes owned by Greystar and Vía Célere, valued at approximately €530 million. The potential buyer was expected to wait for greater political clarity before proceeding, according to the report. The transaction has not been confirmed as cancelled.

Spain was still on course for a record year in overall property investment, but industry experts warned that prolonged uncertainty could have a greater effect on future investment decisions, particularly projects involving homes intended for long-term rental.

What happens next?

The immediate question is whether the changes reported by estate agents will be reflected in wider rental-market statistics over the coming months. Idealista’s figures published on October 15 show that competition for advertised rental properties was already intense, with an average of 43 people per listing bidding for the same home during the third quarter of 2026, up 16 per cent on a year earlier.

If fewer homes are offered for long-term rent while demand remains strong, tenants could face even less choice. However, the latest FAI survey does not establish how many of the reported withdrawals will be permanent, nor how the changes will affect rents nationally.

For people looking for a home, the figures provide another reason to monitor local availability closely. For the property sector, the coming weeks should show whether the reported disruption is temporary or signals a more lasting change in landlords’ willingness to offer long-term rentals.

The new housing rules in Spain have already stopped some evictions, with families in Alicante, Valencia and Madrid among the first to benefit. But the changes do not mean every tenant facing eviction can stay in their home, and landlords may also be affected by new limits on recovering their properties.

At least four evictions have been suspended since the publication of the new housing measures in Spain’s Official State Gazette (BOE) on October 7, according to cases documented by the Cadena SER radio network.

Three suspensions were reported in the Valencian Community and another in the Madrid region. In Alicante, a mother of three secured a court order allowing her family to remain in their home until December 31, 2030.

At least four other evictions took place between October 2 and 7, during the period between the rejection of earlier housing decrees in Congress and the publication of the government’s replacement measures.

For anyone renting or letting a property in Spain, the key question is who qualifies for protection, how long an eviction can be delayed and what the new rules mean for landlords.

Spain’s new eviction rules: Who can avoid losing their home?

These regulations are contained in Royal Decree-law 29/2026 (BOE-A-2026-20823), approved on October 6 and published in the BOE the following day.

Article 2 establishes a system allowing eviction proceedings involving vulnerable households without alternative accommodation to be suspended.

However, the legislation does not introduce a blanket ban on evictions across Spain.The protection available depends on the circumstances of the household, the type of legal proceedings and the characteristics of the property owner.

One provision allows qualifying proceedings brought by certain property-acquisition companies or investment entities to be suspended under a regime running until December 31, 2030.

For other landlords, including private individuals, the decree establishes a separate suspension mechanism with periodic reviews and a maximum duration of three years from the court’s decision, subject to the legal conditions.

The legislation also provides for compensation in certain circumstances involving individual landlords and organisations providing affordable or social rental housing.

This distinction matters for British and other foreign property owners who rent out homes in Spain. The fact that a tenant is experiencing financial difficulties does not automatically prevent a landlord from pursuing an eviction, although the proceedings may be delayed if the legal requirements are met.

The decree also introduces an additional mechanism for certain rent-arrears cases involving economically vulnerable tenants. Under the conditions established by the law, the competent public administration may be required to provide suitable alternative accommodation or cover the outstanding amounts, with consequences for the eviction proceedings.

For tenants, evidence of financial vulnerability and the absence of alternative accommodation can therefore be particularly important.

Courts must assess the relevant circumstances rather than applying the same outcome to every case.

Evictions suspended in Alicante, Valencia and Madrid

One of the clearest examples of the new rules in action comes from Alicante.

A mother living with her three children, aged eight, 15 and 17, faced eviction from her home. However, a court agreed to suspend the proceedings until December 31, 2030, applying the newly published housing decree.

According to Cadena SER, the family had been living in the property under a social rental arrangement, and the court considered evidence of their financial vulnerability and lack of alternative accommodation.

The decision shows how the new legislation can affect cases involving vulnerable households, although it does not mean that every family in similar circumstances will be protected until 2030.

Two other suspensions were reported in Valencia.In the Monteolivete neighbourhood, two residents, Giulia and Natalia, had been facing eviction on October 8. According to a local housing organisation, the court accepted an application to suspend the eviction following the introduction of the new measures.

Another case was reported in Benimàmet, where the residents’ legal representatives requested a suspension under the legislation.

The Sindicat de Llogateres de València said they also asked the court to obtain urgent information from local and regional social services about possible housing alternatives.

In the Madrid region, a fourth eviction was halted in San Sebastián de los Reyes.

These cases represent some of the first reported examples of the legislation being applied, rather than a complete national picture.

Official eviction statistics are published quarterly by Spain’s General Council of the Judiciary, meaning the full impact of the new measures has yet to be established.

Why some evictions in Spain are still going ahead

Despite the new protections, the situation remains uncertain for some households.

The latest developments followed a period of political and legal disruption after Congress rejected two earlier housing decree-laws on October 2.

The government subsequently approved replacement measures on October 6, which were published in the BOE on October 7.

During the intervening period, Cadena SER documented at least four evictions involving households in Vitoria, Jaén and Bilbao.

In Vitoria, two families with children lost their homes within days of one another.

The first eviction took place on October 2, when a family with two children was removed from a property after its rental agreement expired. Housing campaigners said the family had been unable to secure alternative accommodation.

Another family with two children was evicted in the same city on October 5. The mother, identified as Valentine, said she had spent three years looking for another home without success.

In Jaén, a family with two young children was evicted on October 7 following unpaid rent. The landlord claimed the outstanding debt amounted to approximately €20,000.

A further eviction took place in Bilbao, where a woman who had lived in a publicly managed rental property for ten years was removed after accumulating rent arrears.

Even after the new legislation was published, not every application to suspend an eviction succeeded.

For tenants in Spain, the practical message is that vulnerability may provide grounds to request a suspension, but it does not guarantee that an eviction will be stopped.

Anyone facing proceedings should seek legal advice promptly and gather relevant documentation, including their rental agreement, court notices and any social services reports assessing their circumstances.

Landlords, meanwhile, should establish which provisions apply to their particular case before assuming that an eviction can proceed on its original timetable.

Spain’s new housing rules are already changing the outcome of individual cases. But the first decisions also show that the legal protections have limits, with the circumstances of both tenants and property owners playing a significant role.

Spain has lost some 393,000 homes from its long-term rental listings in just seven years, according to new figures from property website Idealista.

The number of homes advertised for permanent rental fell from 902,664 in 2018 to 510,091 in 2025, representing a 44 per cent reduction.

Idealista’s figures only count active long-term rental advertisements and exclude seasonal lets and rooms, so they do not mean that 393,000 homes have simply been left empty. However, the dramatic fall raises fresh questions about what is happening to properties that were previously available to long-term tenants.

Where have Spain’s long-term rental homes all gone?

The reduction has happened while rental prices have been moving in the opposite direction. Idealista’s latest figures show Spanish rents were 5.6 per cent higher in September 2026 than a year earlier, at an average of €15.10 per square metre. Malaga province was among Spain’s most expensive areas, at €18.80 per square metre, after a run of rises that has already pushed Malaga rents above Barcelona.

Some of the country’s biggest tourist and expat markets have seen particularly strong pressure. Andalucia lost 34,403 long-term rental listings between 2018 and 2025, falling from 136,003 to 101,600. The province of Malaga is now one of Spain’s most expensive rental markets, with the latest Idealista figures putting the average at €18.80 per square metre.

For foreign residents, the problem is particularly relevant because the supply of homes available to rent is already competing with demand from Spanish households, international workers, students and people moving to popular coastal areas. Some of that demand is already spilling inland, with foreign renters searching in Jaen and Badajoz, places that were almost unthinkable before for expat living.

Are landlords being pushed out of the market?

That question is becoming increasingly difficult to ignore as Spain introduces tighter rules for the rental sector. The latest Government housing measures include limits on rent increases, stronger protection for some tenants and restrictions affecting other parts of the rental market. Critics argue that increasing regulation can make some owners less willing to offer properties on the long-term market.

That does not necessarily mean every landlord is selling up or leaving a property empty, but some may have changed to seasonal rentals (AirBnB style), sell the property, use it themselves or simply decide that the potential legal and financial risks of becoming a landlord are not worthwhile.

That could include foreign owners who bought a second home in Spain and previously considered putting it on the long-term rental market when they were not using it themselves.

Landlords not the bad guys

Spain’s landlords are not simply big investment companies. More than 90 per cent of homes rented as habitual residences belong to private individuals who have just one rental property, according to a study by the Ministry of Consumer Affairs and the CSIC. These can be ordinary property owners who inherited a flat from a parent, for example, bought a second home when Spanish property prices were far lower, or acquired a property over many years and decided to rent it out. For such owners, becoming a landlord may be a relatively small part of their finances rather than a professional business. The question is whether increasingly complicated rental rules and concerns about recovering their property could persuade some of these owners to sell, leave their homes empty or choose another type of rental.

In the latest round of rental-law legislation, one of the measures that didn’t pass was that landlords would have had to pay back 12-month’s worth of rent to the tenant if they wanted to recover the property.

The Government disputes the idea that its policies are reducing the overall rental stock. Housing Minister Isabel Rodríguez has challenged the interpretation of the Idealista figures and says Spain has 380,000 more rented homes than in 2021.

Government figures also show that small private landlords still account for a substantial part of the rental market. A Ministry of Consumer Affairs and CSIC study found that private landlords with just one rented property account for around 39 per cent of rented homes, with the remainder held by landlords with multiple properties, companies, funds and public bodies.

Spain faces a serious rental supply dilemma

The competing figures underline the central problem facing Spain’s rental market. Protecting tenants can provide greater security for people already renting a home, but owners also need to believe that putting a property into the long-term rental market is worthwhile. Separate estimates already put Spain’s wider housing shortfall at around 740,000 homes.

With almost 393,000 fewer long-term rental advertisements than in 2018 and rents still rising, the question is no longer simply how Spain can protect tenants. It is also how the country can persuade enough property owners to keep offering homes to rent.