The extraordinary two-year extension of rents will cease to apply if the automatic renewal of the second housing decree moves forward

On the same day the first decree on housing was published in the Official State Gazette (BOE), the second decree was delayed until today. The second decree, agreed with the union Sumar, aims to automatically renew rental contracts with severe penalties for landlords. The measure was also demanded by Podemos and the Union of Inquilinas, who have been protesting at the Puerta del Sol for five days.

Once a rental contract expires or its extensions run out, it will be automatically renewed for successive periods of the same duration, unless one of the parties notifies the other of their intention not to renew within a six-month period. If a landlord decides not to renew, they must compensate the tenant with an amount equivalent to twelve months of rent for a similar property, even if the landlord has validly communicated their intention not to renew.

The compensation amount for an 80 square meter apartment with an elevator in Madrid's Puerta del Sol neighborhood would range from 7,000 to 10,000 euros. The second decree also increases the pre-notification period to six months from four months. However, some parliamentary groups, including Junts, expressed dissatisfaction with the first decree and concerns about its lack of rigor and solutions.

The opposition parties, including the PP, also criticized the inconsistencies in the two decrees and their lack of focus on building affordable housing. Despite these criticisms, Podemos has confirmed it will vote in favor of both decrees, following the union's call for their withdrawal and the inclusion of all demands, including indefinite rental extensions, in a single decree.