Automatic rent extensions would require landlords to pay up to a year’s rent if they refuse renewal

The second housing decree provides for automatic extensions of rental contracts and compensation of up to twelve months’ rent for the tenant if the landlord decides not to renew under the terms set out. The Government must secure validation in Congress, but support was not guaranteed: ERC and EH Bildu had announced their backing, while Junts and the PNV had expressed reservations.

The Executive approved two royal decrees. The first contains a broad package of measures, including the temporary suspension of some evictions and tax incentives. The second focuses on automatic renewal, a demand from tenants’ groups. In Spain, urban tenancy contracts are already governed by minimum terms and statutory extensions; this measure would strengthen that continuity.

If approved, it could change the balance at the end of contracts and increase tenant security. For landlords, it will be important to review the final text and seek advice before making non-renewal decisions.