Sumar proposes new rent controls and a tax on landlords owning multiple homes. Credit : sommart sombutwanitkul, Shutterstock
Spain’s left-wing alliance Sumar is stepping up pressure on the government to take urgent action on the country’s growing housing crisis.
The group has proposed a new emergency housing decree, which would include freezing rents, extending leases, and taxing landlords who own several properties.
The call comes just as the October barometer from the Centre for Sociological Research (CIS) revealed that housing has become the biggest concern for Sumar’s voters. Around 60 per cent of their supporters said it’s their top issue, compared to an average of 37 per cent across all parties.
The Ministry of Housing has responded cautiously, saying it welcomes new ideas, but made it clear that Sumar’s proposals are not currently on its parliamentary agenda.
Rents could be frozen and contracts extended
Sumar says its plan is designed to ‘guarantee the right to housing, curb property speculation and strengthen tenant protections.’
Under the proposal, rental contracts would be frozen and automatically renewed once they expire. For tenants living in non-designated high-pressure areas, leases would be extended for three more years, while those in high-demand zones would gain two additional years, meaning some tenants could effectively stay in their homes for up to a decade under the same rent.
The party also wants to regulate all rental contracts, even temporarily, until the government officially defines what counts as a ‘stressed’ area. In practical terms, this would prevent landlords from raising rent prices on renewals or new agreements, locking them at the previous rate.
Sumar is also calling for room rentals to be included in rent control policies, a growing segment of the housing market that has seen sharp price hikes, especially in Madrid and Barcelona.
A 5 per cent tax on multi-property landlords
Beyond rent control, Sumar also wants to tackle what it calls “the concentration of housing wealth”. The group has proposed a significant change to Spain’s Temporary Solidarity Tax on Large Fortunes, introducing a 5 per cent annual tax on landlords who own four or more homes.
The idea, Sumar argues, is to discourage speculative ownership – where properties are left empty or used solely for profit – and to push owners to bring more homes back to the rental market.
At the same time, the proposal includes tax incentives for affordable housing. Companies that rent homes below market value, according to official rental price indexes, would receive a 40 per cent corporate tax deduction.
Sumar also wants to ensure that developers buying new properties for rental purposes are required to offer affordable rents, ensuring new housing developments don’t simply feed speculation.
Tighter controls on tourist lets
Another major part of Sumar’s housing plan targets short-term tourist rentals, which the party says are driving locals out of city centres and pushing rents up even further.
Sumar proposes that any rental contract lasting more than 30 days be officially classified as a tourist rental, ending the widespread use of ‘temporary’ leases to avoid regulation.
In addition, the party supports taxing tourist rentals at 21 per cent VAT, a measure that the Socialist Party (PSOE) has already floated.
While the proposals have grabbed attention, several of them face serious legal and political challenges. Some measures fall under regional rather than national authority, meaning they can’t be imposed across Spain. Others would need broad parliamentary support, which Sumar doesn’t currently have – especially from Junts, whose backing would be key to passing the measures.
Even so, the debate has reignited concerns about Spain’s affordability crisis and the government’s slow progress on housing reform.
A growing sense of urgency
Despite the obstacles, Sumar insists that action cannot wait. With rents continuing to rise and home ownership increasingly out of reach, the party says it’s time for a bold and immediate response.
Spain’s rental market has become one of the most expensive in Europe relative to income. In major cities, tenants now spend more than 40% of their salary on rent, according to recent studies – far above the 30 per cent threshold considered affordable.
For Sumar, this is no longer just an economic issue but a social one, reflecting deep inequality and a lack of access to one of life’s most basic needs. “Housing is a right, not a privilege,” Santiago said, calling for “a fairer balance between the rights of landlords and the protection of tenants.”
Whether or not the government adopts any of these measures remains to be seen. But what’s certain is that the pressure to act on Spain’s housing crisis is stronger than ever.
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