General Election 2026 and Housing: What Changes and How to Act

The snap general election called for 29 November 2026 has placed housing policy at the absolute centre of public debate. Following the Congress's rejection on 2 October 2026 of the validation of Royal Decree-Laws 26/2026 and 27/2026, the real estate market is entering a phase of regulatory uncertainty, coexisting with rising sale prices and demanding interest rates. If you are considering buying, selling, or renewing a tenancy agreement, understanding the possible scenarios will allow you to make informed decisions without relying on political volatility.

The Legislative Pulse in the Final Stretch of the Legislature

The trigger for the new electoral calendar was the lack of support to validate the decrees that sought to tighten rental conditions. At the heart of the negotiations now facing the Permanent Deputation —the body of 69 deputies that maintains parliamentary functions after the dissolution of the Cortes, where the governmental bloc holds a slim majority of 35 seats— three measures with direct market impact stand out:

• Regulation of seasonal and room rentals: The proposal aims to assimilate these modalities to habitual housing contracts subject to the Urban Leases Act (LAU), requiring documented justification of temporality to prevent long-stay market evasion.
• Caps and limitations on rent updates: Establishment of stricter limits on the annual renewal of contracts in declared stressed areas.
• Extension of the social anti-eviction shield: The debate includes extending the suspension of evictions for vulnerable households without housing alternatives until 2030.

Property Sale Prices: Double-Digit Rises Despite Lower Volume

Far from stalling due to the election call, deed prices maintain a remarkable growth rate. According to the National Institute of Statistics (INE), the House Price Index (IPV) recorded a year-on-year increase of 12.2% in the second quarter of 2026. These are real closing prices signed before a notary, not offer expectations on real estate portals.

For its part, the General Council of Notaries reflects in its July 2026 data an average closing price of 2,112 €/m² nationwide (7.7% more than the previous year). However, the price increase coexists with a contraction in the number of transactions: 65,395 sales were registered in July, representing a year-on-year drop of 11.1%. The gap between property types is widening: flats averaged 2,547 €/m² (an increase of 12.5%), while detached properties reached 1,495 €/m² (+2.3%).

At the registry level, the College of Registrars reported a slight year-on-year increase of 1.3% in residential registrations (48,700 operations) in August 2026, pointing to a technical stabilisation of signatures after several months of continuous declines.

The Mortgage Market: Loans at Record Highs and Rates at 3%

The tightening of monetary conditions continues to shape financing. Although the number of mortgages constituted fell by 3.5% year-on-year in July 2026 (with 43,372 operations according to the INE), the average amount borrowed broke its historical record at 180,785 euros, 10.9% more than in the same month of 2025. Buyers need to apply for higher amounts to cover the sale price.

At the same time, the average interest rate at the start of mortgages rose in July 2026 to 3.01%, according to the INE Mortgage Statistics. In the interbank market, the 12-month Euribor closed September 2026 at 3.247% according to the Bank of Spain, accumulating three consecutive months of increases and making variable-rate loan revisions more expensive.

Numerical Example: The Impact of the Rise on a New Mortgage

To understand the weight of credit cost increases, let's compare a standard operation formalised under current conditions against the scenario of a few months ago. Let's assume a buyer acquires an average property and applies for the record amount registered by the INE in July 2026:

• Capital requested: 180.785 €
• Amortisation period: 25 years (300 monthly instalments) using a French amortisation system (constant instalments).
• Scenario A (average interest rate of 2.84% in March 2026): Monthly instalment of 842.50 €. Total interest paid: 71,965 €.
• Scenario B (average interest rate of 3.01% in July 2026): Monthly instalment of 858.66 €. Total interest paid: 76,813 €.

This increase of just 17 basis points means paying 16.16 € more each month, which translates into a financial surcharge of 4,848 € over the life of the loan. This is an illustrative calculation that does not include valuation costs or arrangement fees, but it illustrates why fine-tuning bank negotiations is crucial.

Action Guide: What to Do Before 29N

The proximity of the elections may create temptations to postpone property-related decisions. Let's analyse how to act depending on your position:

1. If you are buying a property

Waiting for prices to fall after the elections is generally not a strategy supported by structural supply data. The scarcity of product in consolidated areas continues to underpin the value per square metre. If you find a property that fits your budget, it is preferable to sign the deposit contract (arras) after confirming credit viability with your bank. Negotiate mixed or fixed offers to shield yourself against Euribor fluctuations.

2. If you are a property owner selling

The market absorbs product at record prices, but the volume of transactions is falling (-11.1% according to notaries). Setting an out-of-market price will unnecessarily prolong sales periods. Take advantage of the current period of peak prices before a possible change in capital gains tax or property transfer tax that could be debated in the new legislature.

3. If you have a property to let

Regulatory uncertainty particularly affects those operating with short-term contracts. Ensure that your contracts scrupulously meet civil and administrative requirements: if you let seasonally, the temporary reason (studies, fixed-term employment contract, medical treatment) must be explicitly stated in the document along with the tenant's habitual residence address. In case of tax or contractual drafting doubts, it is advisable to consult a registered specialist.