In a decisive move, Spanish Prime Minister Pedro Sánchez has put forward a proposal to the autonomous communities to secure the protection of publicly financed housing indefinitely and reform the existing land law.

This comes amid concerns over escalating rental prices in high-demand areas, underscoring the critical nature of Spain’s housing crisis.

During the XXVII Conference of Presidents held in Santander, the Spanish government reiterated its goal to establish an affordable public housing stock representing 20% of the total market.

To achieve this, the proposal suggests that the public and social character of properties funded with public resources should remain 'permanent and irreversible'.

This marks a significant shift from the 1990s model where such protections were temporary before transitioning to the open market.

The proposed land law reform aims to provide municipalities with greater legal security when altering urban plans, accelerating the development of affordable housing and adapting regulations to climate change.

However, this initiative is yet to be debated in the Congress of Deputies, having previously faced withdrawal due to a lack of support from coalition partners like Sumar, Podemos, ERC, and Junts.

Addressing the conference, Sánchez underscored the importance of housing, especially for Spain’s younger generations, within broader discussions encompassing finance, healthcare, and immigration.

Yet, his call has faced regional resistance.

The Andalusian government criticized the housing law for exacerbating existing issues, urging withdrawal and seeking a detailed plan for the promised construction of 183,000 homes.

Andalusia’s President Juanma Moreno has advocated for a revival of fiscal incentives and the allocation of public land for housing development.

Similarly, Murcia's President Fernando López Miras questioned the law's efficacy and emphasized listening to regional proposals, such as VAT reductions for public housing acquisitions.

In contrast, Cantabria and Extremadura have shown a more conciliatory stance, acknowledging the steps but deeming them inadequate.

The Basque government, aligned with Sánchez’s vision yet protective of its competencies, demanded urgent public investment and legislative support for accelerating urban procedures.

Catalonia’s President Salvador Illa highlighted housing as a key driver of inequality while showcasing his region’s ambitious plan to construct 50,000 homes by 2030.

As Spain navigates these complex discussions, the challenge remains to harmonize regional needs with national strategy, crafting a path forward that turns proposals into tangible, lasting change.