Spain's parliament on Friday rejected two key government decrees designed to address the nation's housing affordability crisis, dealing a significant blow to Prime Minister Pedro Sanchez's administration.

The twin decrees, intended to provide relief for renters and curb speculation, failed to secure a majority in the 350-seat lower house, with widespread opposition from right-wing and separatist parties.

The proposed measures aimed to protect vulnerable individuals from eviction, restrict real estate speculation, tighten regulations on short-term rentals, and offer incentives for renting and new housing construction. A separate decree sought to implement automatic lease renewals and require landlords to pay tenants a year's rent to terminate contracts.

The rejection comes amid heightened public pressure, with hundreds of protesters gathering outside parliament on Friday to demand action on housing affordability. The government's proposed legislation was partly a response to a public outcry following the televised eviction of an 87-year-old woman, Maricarmen, on September 23, which sparked protests and a sit-in in Madrid's Puerta del Sol square.

Prime Minister Sanchez had urged lawmakers to prioritize the needs of ordinary citizens, particularly young people struggling to afford independent housing and families facing rising rents. He warned that failing to pass the measures would result in harsh historical judgment.

However, opposition parties voiced strong objections. The right-wing Catalan separatist party Junts argued that the decrees would inadvertently lead to a tighter housing market by encouraging property owners to withdraw units from rental circulation. The centre-right Popular Party and the far-right Vox party also voted against the measures, echoing concerns that the policies would be counterproductive.

Miriam Nogueras of Junts specifically criticized the decrees for still allowing speculators to acquire property and proceed with evictions, suggesting they did not go far enough to protect tenants.

The failure to pass these decrees leaves the government facing continued public discontent and highlights the challenges in finding consensus on urgent social issues within a fragmented parliamentary landscape. The outcome raises questions about the government's ability to implement its housing agenda and the future of affordability measures in Spain.