In a last-minute agreement to avoid a setback in Parliament, the Catalan regional government has struck a deal with left wing parties to regulate so-called “seasonal rentals” — the rapidly growing loophole that has allowed landlords to bypass rent caps.
The pact ensures the approval of two key decrees on housing and public contracts, providing political oxygen to socialist President Illa’s regional government. However, a third decree on campsites in flood-prone areas will be scrapped and reworked after failing to gain support.
Seasonal rental loophole gets plugged
Under growing pressure from rising rents and tightening supply, the government has agreed to legislate seasonal rental contracts (known locally as alquileres de temporada), which will now be subject to the same pricing caps as standard leases — unless they are clearly for “recreational” or “tourist” use. The law, expected to be passed before the summer recess, will also prevent landlords from boosting total rental income by turning apartments into multiple bedroom lets. This is a rehash of a previous attempt by Catalonia’s government to squash seasonal rentals that lasted 30 days.
This move directly targets a workaround many owners have used to skirt newly introduced rent caps. According to the Metropolitan Housing Observatory (OMH), seasonal rentals surged to 54.1% of all rental listings in Barcelona in the third quarter of 2024 — effectively one in every two homes offered — up from 11–32% prior to the cap.
More protection for social housing, stronger powers for inspectors
Another key element of the agreement is the extension of protected status for public housing located in “stressed” areas — zones where residential demand far outweighs supply. Without intervention, 36,000 homes (29,000 of them in high-demand areas) would lose their protection by 2030. These homes will now retain their protected status as long as their municipality remains classified as a stressed zone.
To help ensure compliance, the government will also strengthen the legal authority of housing inspectors. New powers will include the ability to verify rental contracts, conduct inspections (on-site and documentary), and issue recommendations or sanctions in cases of abuse or fraud. The new inspectorate will be linked to a future body: the Housing Rental Contract Oversight Commission.
Polished politics: Winners walk away with gains
The political agreement avoids what could have been a stinging parliamentary defeat for the government. In signing the deal, Illa’s administration reversed its earlier stance that seasonal rentals fall under national jurisdiction — a notable concession that helped seal the pact.
For their part, opposition partners praised the outcome. David Cid of Comuns hailed the deal as a “landmark agreement” that treats housing as a right rather than a speculative asset. ERC’s Ester Capella emphasised the importance of ending “landlord trickery” used to bypass price limits.
In a surprising twist, the anti-capitalist CUP also gave their backing despite previously opposing any collaboration with the Socialists. “This is a social victory,” said CUP’s Laure Vega, while warning against premature celebration. “This is only the first step.”
Government spokesperson Ferran Pedret described the accord as “progressive forces coming together to respond to society’s pressing housing concerns.”
What next?
With this agreement, the Catalan government shores up its legislative agenda and catches up with calls for a tougher approach on housing. However, critics argue that the move will simply further reduce the supply of rental housing in Barcelona, leaving people who need temporary accommodation—such as foreign students, business professionals on work assignments, and individuals receiving medical treatment along with their families—with no option but to stay in hotels. This, they warn, could harm key sectors in the city, including business, healthcare, and education.
