The Spanish Congress today, 2 October 2026, rejected the two housing royal decree-laws the Government approved on 29 September. Junts joined the "no" already announced by PP and Vox, forming a large enough majority to defeat both texts. If you have a home that is rented out, or are thinking of renting or selling in Reus or Tarragona, this is what it means.
What did the decrees include?
The two texts, already in force since their publication in the BOE and pending today's validation vote, proposed:
- An extraordinary two-year extension for rental contracts ending before 31 December 2028, together with limits on certain rent increases.
- Automatic renewal of rental contracts, requiring landlords to give specific reasons to end them, with possible compensation for tenants in some cases.
- Suspension of evictions of vulnerable people, scheduled to last until 2030.
Why were they rejected?
Junts, PP and Vox had enough votes to block both decrees in the roll-call vote. Junts asked the Government to withdraw the texts and negotiate a new one; the Government refused and went ahead with the vote. As they were not validated, the decrees lapse and no longer apply.
What changes now for landlords and tenants
With the decrees defeated, neither the extraordinary extension to 2028 nor automatic renewal with justified reasons comes into force. Rental contracts are once again governed by the general Urban Leases Act, without this extra layer of protection. In Reus, this adds to the city leaving the stressed-market designation, which we already covered on this blog: between the two, landlords regain much more room for manoeuvre than they had just a few months ago.
Meanwhile, this is the market in Reus and Tarragona
The underlying context has not changed: prices are still rising strongly in both cities. In Reus, the average price of finished homes rose 12.99% year on year in the second quarter of 2026, to €1,616/m²; by August it was already €1,716/m², 15.7% more than a year earlier. In the city of Tarragona, the year-on-year rise in the second quarter was 10.72%, with the square metre close to €1,958/m² — although activity is slowing here: 505 sales in the quarter, 5.08% fewer than in the same period of 2025.
What does this mean for you?
If you had a decision on hold while waiting to see what happened with these decrees, you now have the answer: the framework is back to what it was, with more room for owners both in renting and selling. With prices rising and sales activity slowing, getting the asking price right matters more than ever.
At MADASH GROUP we follow the Reus and Tarragona market closely. If you want to know what options you have with your home, ask us for a free valuation or message us on WhatsApp.
Sources: idealista/news and Moncloa.com, 2 October 2026; price data from Tinsa and Diari de Tarragona.
