Prime Minister Pedro Sanchez lost control of the Spanish legislature on Friday when his allies failed to secure a majority for new rental regulations. The Congress rejected the first of two housing decrees in a 178 to 172 vote, while a second measure to automate lease renewals fell 184 to 166. The opposition, led by the right-wing PP, Vox, and the Catalan Junts party, successfully blocked the Socialist minority government's attempts to expand eviction protections until 2030 and regulate seasonal rentals.

The defeat significantly heightens the likelihood of a snap general election, with prediction markets on Polymarket placing the odds at 56% for a vote on November 29 or December 6. Sanchez faces mounting pressure from corruption probes involving former party officials and nationwide protests over a housing crisis, which intensified after the police eviction of 87-year-old Maricarmen Abascal. While Moncloa has denied the likelihood of early elections, government ministers have indicated a high probability of dissolving parliament if the legislative agenda continues to collapse.