New measures in housing are being shaped by the government through the newly established Ministry of Housing and Urban Agenda, led by Isabel Rodríguez. The focus is on reforming the Land and Urban Rehabilitation Law to strengthen the housing framework. This was communicated by the former Executive Spokesperson in a recent appearance before the Extraordinary Commission.
Rodríguez emphasized that urban development faces weathering challenges from various planning instruments and recurring cancellations of regional and urban plans. The state intends to respond with a legal reform that delivers stability, clarity, and legal certainty. She noted that urban and regional plans play a pivotal role in housing policy and that the draft amendment to the Land and Urban Rehabilitation Law would reactivate a text previously halted in the last legislative session. The proposal had already reached the Council of Ministers in December 2022 and is now intended to restart its parliamentary process in the current session (as stated by Rodríguez).
While the minister’s comments may not spark broad enthusiasm across political factions, the measure is regarded as highly significant. The architect of this effort is seen as independent from party politics. The discussion also touched on Isabel Pardo de Vera, formerly Secretary of State for Transport, Mobility and Urban Agenda, who recently faced a personnel decision in relation to past rail infrastructure cases. Pardo de Vera has been mentioned in connection with a potential role with the rental sector, but her name remains tied to ongoing reform discussions in housing planning.
In October 2022, Pardo de Vera announced progress on reforming zoning legislation, underscoring a desire to prevent development activity from stalling due to procedural flaws. There were indications of addressing issues that have affected both public and private developers, including analyses of city plans that were deemed null for formal or non-substantive reasons after judicial challenges. Legal professionals have raised concerns about how certain processes have been used in land transactions, while others warned about potential leverage by some actors in the process.
At a sector briefing, the former Foreign Affairs official acknowledged the long waiting times for licenses in municipal procedures and the extra costs involved. The ministry is exploring tools to assist autonomous communities and city councils with urban planning tasks, while preserving guarantees for stakeholders involved in the process.
Juan Antonio Gómez Pintado, president of the employers’ association and the Spanish Association of Developers and Constructors (APCE), expressed optimism about the upcoming reform. He noted that a stable regulatory framework could reduce uncertainties in urban planning and bolster the viability and confidence of housing projects across the country.
What will the New Land Law regulate?
The amendment draft to the Land and Urban Rehabilitation Law has been prepared and published since December 2022. An identified issue lies in Spain’s current regulations related to regional and urban planning tools, which can render plans invalid for procedural reasons, even when the substantive content is sound. The goal of the reform is to enhance legal security in planning activities and support the development of new neighborhoods.
As of now, the approval process also aims to support numerous investment programs already approved under the Recovery, Transformation and Resilience Plan. It is noted that housing construction should avoid negative procedural delays, with public administrations subject to certain housing protections when projects involve public-private partnerships or subsidiary initiatives aimed at social leasing and related measures.
The reform envisions the Ministry of Housing and Urban Agenda becoming a resource hub for all public administrations. It is planned to deploy a telematics platform that provides the information needed to request sectoral reports. The platform would impact regional and urban planning instruments, their publication, and their management, potentially reducing delays in state action and report issuance.
People’s Party could influence approval
Sources aligned with the Socialist side anticipate that the People’s Party (PP) will support the Land Law reform, noting that a recent statement from Feijóo prioritized greater legal certainty in urban planning matters.
Conversely, conservative sources suggest a cautious path forward. They point out perceived contrasts with PSOE’s housing policy, referencing the housing bill discussed in the previous parliament and its reception by PP, ERC, and EH Bildu, which included positions on informal housing and related measures. Feijóo’s recently appointed national leadership, including Paloma Martín, signals alignment with certain housing policy directions observed in Isabel Díaz Ayuso’s approach at the regional level.
The overall aim of the Land Code reform is to separate it from the Housing Code, which would otherwise address rental price controls. With these distinctions in mind, observers suggest that obtaining consensus may be challenging, especially with left-leaning partners. Current ministry sources stress that the reform should proceed with minimal changes to the core text, allowing various parties to contribute during later approval in the Cortes.