A power struggle is brewing within Spain’s governing coalition as the Socialist Party (PSOE) and its junior partner, Sumar, vie to lead the country’s housing agenda—an issue that both parties are positioning at the core of their legislative strategy.
Though allies in government, PSOE and Sumar have begun drawing sharp lines between their competing proposals on housing, each hoping to brand itself as the true champion of affordability and social justice in an increasingly tense landscape marked by soaring rents and property speculation.
The conflict comes at a time when housing has climbed to the top of public concern, particularly in cities like Madrid, Barcelona and Palma, where short-term rentals, so-called gentrification, and foreign investment have squeezed locals out of the market.
PSOE: market reform with a fiscal edge
In recent weeks, PSOE has floated proposals to increase VAT on short-term tourist rentals and introduce a tax on foreign buyers—moves aimed at cooling speculative demand and generating public revenue. These measures reflect the Socialists’ wider strategy of tweaking the tax framework to level the playing field without spooking the broader market or foreign investors.
“We must ensure that housing returns to its role as a basic right, not just an investment vehicle,” government sources say, though the PSOE continues to favour a more measured, incremental approach to reform.
Sumar: pushing for structural transformation
Hard-left Sumar is taking a more activist stance. Beyond tackling tourist rentals, the left-wing platform is pushing for deeper regulations on large landlords, stronger rent controls, and expanded public housing stock—arguing that the current housing model is no longer fit for purpose.
“We’re not here to patch up a broken model. We’re here to transform it,” has been the recurring message from Sumar’s parliamentary team.
Tensions reached a new high this week following the submission of competing proposals to Parliament, with Sumar insisting that its ideas go beyond revenue generation and seek to guarantee universal access to decent housing.
Why this battle matters
While both parties agree on the urgency of the housing crisis, their differing philosophies raise key questions: Should housing be primarily a matter of fiscal policy or structural reform? Should the state act as referee—or take the field?
This internal rivalry now threatens to complicate the coalition’s unified message and could stall legislative progress if a coherent policy roadmap isn’t agreed upon. Nonetheless, both parties appear determined to mark housing as their political battleground of choice for the coming year.
A preview of 2025?
The political significance of housing cannot be overstated. With national and regional elections looming on the horizon in 2025, PSOE and Sumar are not just fighting over legislation—they’re fighting over the loyalty of Spain’s squeezed middle class and disillusioned young renters.
And while coalition friction is not uncommon, the depth and visibility of this tussle suggests it may shape not only housing policy but the broader political narrative of this legislature.
For property investors, landlords, developers, and local authorities, this battle is one to watch—because what currently looks like a war of words might soon materialise into damaging legislation.
