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Economist Bernardos advises landlords to leave properties empty after housing decrees

Following the government’s re-enactment of two housing decrees and their planned confirmation by the Diputación Permanente, Gonzalo Bernardos warns of legal uncertainty and recommends not renting out properties for the time being.

The Spanish government has re-enacted two decrees with the force of law on housing policy and submitted them to the Diputación Permanente of Congress for confirmation. The economist Gonzalo Bernardos criticises the move and advises private landlords to leave their properties empty for the time being, until clear and stable rules are in place again, in his view. He made the comments on social media and in media interviews.

The main provisions of the two Reales decretos-ley include changes to existing and new tenancies. These include a temporary extension of rental contracts by up to two years in certain cases, limits on rent increases, and an extension until 31 December 2030 of protection from eviction for particularly vulnerable people with no alternative accommodation. Tax incentives for affordable housing and tighter rules for short-term and room rentals are also planned.

The decrees had previously failed in the plenary session of the Congreso de los Diputados and were subsequently re-enacted by the Council of Ministers. Following publication in the Boletín Oficial del Estado they apply provisionally until the Diputación Permanente confirms or repeals them. This interim step is provided for under Spain’s constitutional framework when Parliament is not sitting in ordinary plenary session.

Bernardos, a professor at the Universitat de Barcelona, considers the packages unbalanced. In his view, the measures could unsettle landlords and reduce the supply of rental homes in the short term. He therefore recommends temporarily not letting properties to new tenants until the legal position is clear following the forthcoming confirmation or repeal. He says that the combination of rent caps and extended commitments would disadvantage new tenants, contract renewals and landlords alike. This is an economic analysis, not legal advice.

The government led by Prime Minister Pedro Sánchez justifies the measures as a way to protect tenants in a strained market, curb speculative vacancies and create additional incentives for affordable housing. Property industry associations, by contrast, have long warned that fixed limits on adjustments and extensive extensions could deter investment and reduce availability. Data from implementation will be needed to show the actual effects.

The final legal status remains open pending a decision by the Diputación Permanente. Landlords and tenants should seek advice on their individual legal position if they have specific questions. The vote is likely to intensify the political conflict between tenants’ and landlords’ interests.

Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).

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