Spanish Government spokesperson Pilar Alegría. Credit: Pool Moncloa/Fernando Calvo
Spanish Government has announced a new state-backed guarantee scheme aimed at encouraging more landlords to rent their properties to young people under 35 and households deemed vulnerable by regional authorities. The initiative, approved during Tuesday’s, December 9, Cabinet meeting, offers landlords financial protection against unpaid rent, property damage and overdue utility bills, responding to growing concerns about the accessibility of long-term housing across Spain’s major cities.
A measure framed as support for struggling groups
Government spokesperson Pilar Alegría emphasised that the main objective of the scheme is to “facilitate access to housing for young people and vulnerable groups”. These groups, often priced out of the rental market, have seen increasing difficulties due to rising rents, stagnant wages and a chronic shortage of affordable homes. Alegría noted that the financial details behind the scheme will be finalised shortly, but reiterated that the priority is to widen rental opportunities in a market that has tightened sharply in recent years.
Regional governments take the lead on implementation
According to the Ministry of Housing and Urban Agenda, the management of the scheme will fall to Spain’s regional governments, as well as Ceuta and Melilla. These administrations will also be permitted to introduce additional requirements based on local housing needs. To benefit from the scheme, landlords must meet several conditions, including compliance with the state reference rent index, the deposit of the mandatory rental bond and the signing of the rental guarantee agreement with their tenant. Landlords must also be fully up to date with tax and Social Security obligations.
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Monitoring and transparency requirements
The coverage provided by the new guarantees will apply to contracts in force on 30 January 2025, ensuring that existing rentals can also be supported. Regional authorities will have to submit reports every six months to the Housing Ministry detailing the number of guarantees granted and the circumstances under which they were applied. The Government argues that these transparency requirements will allow for a clearer understanding of the rental market’s evolution and the measure’s effectiveness.
A response to concerns over fear-driven narratives
Housing Minister Isabel Rodríguez highlighted last week that the scheme aims to “offer reassurance” to landlords who may feel uneasy about renting to younger or vulnerable tenants. She added that the Government hopes the initiative will counter narratives that “fuel fear” about rental risks, insisting that the majority of tenancies in Spain are stable and trouble-free. Rodríguez also stated that increasing confidence among landlords is essential at a time when demand for affordable rental homes continues to rise.
Part of a wider negotiation context
The Government had previously hinted at the measure on 2 December, when Prime Minister Pedro Sánchez told RAC1 radio that the executive intended to move swiftly to approve it. The decision also fits into a broader political context: Junts, the Catalan party, has long demanded stronger housing interventions as part of its negotiations with Sánchez. The Prime Minister recently acknowledged “unfulfilled commitments” with the party, and the new decree forms part of efforts to rebuild trust.
Casa 47 marks a major shift in state housing strategy
Alongside the guarantee scheme, the Cabinet approved a royal decree transforming Sepes, the State Land Entity, into a new State Housing Entity aligned with the Government’s Casa 47 strategy. The change marks a significant evolution from Sepes’ traditional role in land development, expanding it into an organisation responsible for the entire lifecycle of Spain’s national public housing stock.
Long-term investment to reshape the rental landscape
The transformation is supported by a planned €13 billion investment over the next ten years, aimed at building a self-sustaining public housing portfolio capable of resisting speculative market cycles. The Government argues that this long-term approach is essential to increase the availability of affordable homes, stabilise rental prices and provide a more predictable environment for both tenants and landlords.
Spain’s worsening housing affordability gap
Spain’s national housing crisis has deepened sharply over the past decade, fuelled by a combination of rising rental prices, stagnant wages and a limited supply of affordable homes. Major urban centres such as Madrid, Barcelona, Valencia and Málaga have seen rents increase far faster than average household income, placing younger residents and low-income families at a growing disadvantage. The situation has been further strained by strong demand from international buyers and the expansion of short-term holiday rentals, both of which have reduced the stock of long-term housing.
The construction sector has struggled to keep pace with demographic needs, resulting in a widening affordability gap that now ranks among the most severe in Europe. Many Spaniards, particularly under-35s, face long delays in securing stable accommodation, while others are forced to move away from city centres altogether. Property experts warn that unless supply increases significantly, the imbalance between available homes and demand will continue to worsen.