Spain Unveils Sweeping Housing Reforms After Eviction of 87-Year-Old Ignites Nationwide Protests

Spain's coalition government has approved a package of new housing measures in response to a wave of public anger over the country's deepening housing crisis, a backlash triggered by the forcible eviction of an 87-year-old woman from her Madrid apartment last week.

Ministers convened on Tuesday to finalize the proposals, which Health Minister Mónica García said could include a moratorium on evictions lasting until 2030. The plan, she argued, would extend relief to more than five million people across the country. However, the agreement drew immediate criticism from opposition politician Míriam Nogueras, who contended that small landlords had been "left out in the cold" by the government's approach.

The measures still require parliamentary approval, a significant hurdle for the minority leftist coalition, which does not command a majority in the legislature. The government, composed of the ruling Socialists and their junior partners in the Sumar platform, has 30 days from the publication of the decree to secure an agreement in parliament.

Beyond the potential eviction ban, García said the cabinet had agreed to roll over existing rental contracts until 2028, introduce stricter regulation of short-term and room rentals, and prohibit investment firms from purchasing residential housing. She framed the proposals as a necessary intervention in a market that has increasingly favored speculative capital over ordinary residents.

"It is time to intervene in the speculative housing market and start striking a balance between ordinary citizens and vulture funds," García said, employing language that has become central to the government's defense of the reforms.

She also credited grassroots pressure for pushing the issue to the top of the political agenda, acknowledging the street protests and encampments that have spread across Spanish cities. "Thanks to the mobilisations and the encampments. Without you, this would not have been possible," she said.

The protests erupted after Maricarmen Abascal, an 87-year-old resident of Madrid, was forcibly removed from her home on a stretcher and subsequently admitted to hospital. Her case quickly became a symbol of a broader housing affordability crisis that has gripped Spain, where rents have soared and many tenants face the prospect of displacement.

Ahead of the government's announcement, Abascal's lawyer said she would be permitted to return to her apartment after reaching a deal on Monday with the company that owns the property. Abascal was unable to attend the meeting that produced the agreement and has not yet signed the arrangement, according to her legal representative.

The eviction sparked an encampment in Puerto del Sol, in the heart of Madrid, which has since grown to include hundreds of participants. Demonstrations have also taken place in Barcelona, Seville, Malaga and Cadiz, underscoring the nationwide scale of discontent over housing costs and tenant protections.

The political response has laid bare divisions within Spain's fragmented parliament. Nogueras, speaking on behalf of the pro-Catalan independence party Junts, said there was broad consensus that evictions should be halted when the property is owned by a fund or a "vulture fund" managed by someone overseeing millions of euros. But she warned against conflating such entities with individuals who have invested their life savings in a flat, a restaurant or another property.

"Lumping together in this category those who have invested their savings in a flat, a restaurant or a property — putting them all in the same basket — is a mistake," Nogueras told Spanish public broadcaster RTVE.

Her remarks highlight the delicate balance the government must strike as it seeks enough parliamentary support to convert the decree into lasting law. The coalition's minority status means it will need to negotiate with smaller parties, some of which have their own constituencies and concerns about the impact on small property owners.

Socialist Housing Minister Isabel Rodríguez was scheduled to provide further details on the measures at a news conference later on Tuesday, a briefing that could clarify how the eviction moratorium would be enforced and what exemptions, if any, might apply to small landlords.

Spain's housing crisis has been building for years, driven by rising rents, limited social housing stock and the growing presence of institutional investors in the residential market. The eviction of Abascal added a human face to a problem that had largely been debated in policy terms, turning a statistic into a rallying cry for protesters who argue that the current system prioritizes profit over people.

The proposed ban on purchases by investment firms reflects a growing European debate over the financialization of housing, with governments across the continent grappling with how to keep homes affordable for residents while respecting property rights and market dynamics. Spain's reforms, if enacted, could serve as a test case for whether such interventions can cool overheated markets without deterring needed investment in new construction.

For now, the measures remain a proposal awaiting parliamentary approval, and the government faces a compressed timeline to build consensus. The coming weeks will determine whether the outrage sparked by one elderly woman's eviction translates into durable policy change or becomes another flashpoint in Spain's long-running struggle over housing.