Mallorca renters wait as Spain's lease extension stalls

Mallorca, Spain: tenants face a wait until at least 15 November for automatic extensions of their rental contracts — and the measure may not pass at all. Spain’s Official State Gazette publishes two housing decrees on Wednesday, 7 October, after parliament rejected earlier versions last Friday. One is due to take effect on Thursday; the decree covering rental extensions needs a vote first.

Rental extension lacks the votes

Prime Minister Pedro Sánchez says the government does not have a parliamentary majority for the extension. Both Junts and the Basque Nationalist Party oppose it. The government has therefore pushed back its planned start to 15 November, by which time the Permanent Deputation of the Congress of Deputies is expected to have voted.

First-home loans join the housing plans

The two decrees contain 21 measures covering affordable homes and renting. A new programme called Tu Casa would offer loans of up to 50,000 euros to people buying their first home, backed by 10 billion euros. The state-backed Official Credit Institute would manage the loans for people with an income but too little saved for a mortgage deposit. They are not limited to young buyers.

A separate 400 million-euro fund would help social housing providers build homes for affordable rent. The decrees also tighten rules on speculative home purchases by so-called vulture funds. For tenants on Mallorca, though, the automatic lease extension still hinges on the vote before 15 November.

Topics: Politics

Source: Europa Press / Mallorca.com