Spanish Prime Minister Pedro Sánchez has called a general election for 29 November, bringing Spain to the polls months ahead of schedule after his minority government suffered a major parliamentary defeat over measures intended to tackle the country’s housing crisis.

Sánchez announced the dissolution of parliament on Monday, ending months of speculation over whether his increasingly difficult parliamentary position could force an election before the current legislature was due to expire in 2027.

In an institutional statement announcing the election, Sánchez acknowledged that his government had “made mistakes” and had not achieved everything it had set out to do.

He said problems remained particularly acute in inequality, public services and access to housing, arguing that further reforms required a larger parliamentary majority.

“To do more, we need to renew and expand people’s support,” Sánchez said. He called for a “much broader, progressive majority” capable of carrying the government’s programme through parliament.

The election will take place on Sunday, 29 November, rather than in 2027, when the current parliamentary term was due to end. Sánchez informed King Felipe VI before convening an extraordinary meeting of the Council of Ministers to dissolve the Cortes Generales.

Housing defeat brings crisis to a head

The immediate political backdrop to the decision was Friday’s rejection of two emergency housing decrees by the Congress of Deputies.

The government had approved the two decrees on 29 September in an attempt to address growing anger over rents and access to affordable housing.

The first contained measures to protect vulnerable households from eviction, increase the supply of affordable homes and restrict some forms of speculative property investment. It also proposed changes affecting tourist accommodation and purchases by investment funds.

The second concentrated on residential rental contracts, including provisions intended to prevent tenants from suddenly being forced into substantially more expensive agreements when existing leases expired.

Both measures were defeated. The first received 172 votes in favour and 178 against. The second was rejected by 184 votes to 166. The votes again demonstrated the difficulty facing a government whose survival has depended on agreements with several regional and nationalist parties.

Housing has developed into one of Spain’s most contentious domestic political issues as rents and property prices have increased sharply in Madrid, Barcelona and other major cities and tourist areas.

The dispute intensified following the eviction of 87-year-old Maricarmen Abascal from the Madrid home where she had lived for more than 70 years.

Abascal was removed from the property on 23 September following a dispute over the rent. Her previous monthly payment had been €500, while the owners initially sought €2,650 before reducing the demand to €1,650 — still above her pension income.

Images of the elderly woman being taken from the building on a stretcher prompted widespread public anger and helped turn her case into a symbol of Spain’s housing crisis.

Tens of thousands of demonstrators subsequently took to the streets of Madrid, Barcelona, Valencia and other cities demanding stronger protection for tenants and measures to curb rising housing costs.

Sánchez’s fragile parliamentary majority

The housing vote exposed once again the central weakness of the government formed after Spain’s inconclusive 2023 election.

The conservative People’s Party (PP) won the largest number of seats, but its leader Alberto Núñez Feijóo was unable to assemble a parliamentary majority.

Sánchez remained prime minister after securing support from Sumar and reaching agreements with Catalan and Basque parties. The arrangement allowed him to form another government but left individual pieces of legislation dependent on negotiations with parties whose positions frequently diverge.

The latest housing measures were opposed by the PP and Vox, while Catalan party Junts also voted against them.

The PP has argued that greater intervention in the rental market risks reducing the number of properties available by discouraging owners from renting them. Its housing policy has instead placed greater emphasis on increasing supply.

Sánchez’s government argues that intervention is necessary because housing costs have increasingly become disconnected from household incomes in the areas experiencing the greatest pressure.

The issue has also become increasingly relevant at European level. Housing affordability has moved higher up the EU political agenda as governments confront shortages in major cities, rising construction costs and the impact of short-term tourist accommodation.

EU Today has previously reported on the growing pressure on European governments to address housing affordability, an issue that is increasingly intersecting with debates over migration, tourism, urban development and the cost of living.

Eight years in power

Sánchez has served as prime minister since June 2018, when he replaced Mariano Rajoy after winning a parliamentary vote of no confidence.

His latest term has been complicated not only by parliamentary arithmetic but by investigations and corruption cases involving people connected with the Socialist Party, as well as disputes over migration and household costs.

The government has nevertheless pointed to Spain’s economic performance and employment figures as evidence that its policies are working. In his election announcement, Sánchez described Spain as the EU economy recording the strongest growth and employment creation.

Spain has also remained an important participant in wider European debates over Ukraine, defence expenditure and the future direction of the European Union, while Sánchez has frequently differed with some European partners over the pace of increases in military spending.

The coming campaign is therefore unlikely to remain centred solely on housing.

PP sees opportunity

Feijóo enters the campaign with the PP expected to emerge as the largest individual party according to most recent polling, but the question of whether it could govern will depend heavily on the performance of Vox.

A PP victory without an outright majority could leave Feijóo dependent on Vox to form a government, making the balance between the two parties one of the central questions of the campaign.

Sánchez, meanwhile, will attempt to rebuild the coalition of left-wing and regional voters that allowed him to remain in office after the 2023 election.

His decision effectively turns the parliamentary confrontation over housing into a national vote on his eight years in power.

“The time has come,” Sánchez said in Monday’s address, “for the Spanish people to decide what future you want for yourselves and for your country.”

Spain will now enter a compressed election campaign in which housing, the cost of living, migration, corruption allegations and the future composition of the government are likely to dominate.

The formal election process begins with the dissolution of parliament, with voters going to the polls on 29 November.

After years without being able to pass a budget, a coalition that wavered over every major proposal, the Ceuta crisis, a string of corruption cases and people taking to the streets over the housing crisis, Spanish prime minister Pedro Sánchez has called snap elections for 29 November — just as a rightwing victory appears increasingly unstoppable.

Monday’s (5 October) move is barely a surprise. Sánchez’s gambles have proven effective in the past to keep his grasp on power. 

Even before the summer, an early election wasn’t considered a far-fetched possibility. Sources in Sánchez’s centre-left Spanish Socialist Workers’ Party (PSOE) and its allies linked it to the budget vote anytime from October onwards, with some analysts pointing to November 2026 as a politically attractive date.

Spain now faces a 54-day sprint to the polls, the shortest window the law allows, with Sánchez betting that the housing issue can turn the campaign in his favour.

But why now?

The eviction of an 87-year-old woman from her rental home after 70 years on 23 September prompted people across the country to take to the streets against Spain’s ongoing housing crisis.

And last Friday, the Spanish lower house in parliament rejected two new housing decree-laws. It was the centre-right People’s Party (PP), far-right Vox, Catalan pro-independence party Junts and Navarrese regional party UPN who voted them down, exposing once again how fragile Sánchez’s parliamentary coalition is.

But with parliament dissolved, a political manoeuvre could now see similar housing decrees approved anyway – helping Sánchez make the housing crisis his main election motto.

Housing bet

In Spain, when parliament is dissolved ahead of an election, responsibility for ratifying government-approved laws passes to a smaller standing committee of 69 lawmakers, known as the Diputación Permanente [Permanent Deputation], which continues to operate until the new parliament is sworn in.

The maths in that body favours Sánchez. His socialist party and the left-wing and regional parties that backed the original housing decrees hold 35 seats, against 34 for the opposition.

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