Rents capped at 2%: what Tuesday's two housing decrees change

Today's essentials (5 key points)

• Madrid approved two housing decree-laws on Tuesday 29 September 2026 that limit annual rent increases to 2% and allow two-year extensions for leases ending before 31 December 2028.
• In Palma, Tuesday brings temperatures between 23 and 27 degrees with scattered showers, while Maó stays dry under cloud, according to Open-Meteo.
• A car caught fire on the airport road in Ibiza, near Sant Jordi, as filmed by Periódico de Ibiza.
• The housing protest camp in Palma's Plaça d'Espanya agreed on Tuesday to stay for at least one more night, Ultima Hora reports.
• The environmental group GOB has asked Es Castell and Es Mercadal councils why some lawns in tourist developments are still green despite water restrictions.

Today's essentials

Rents capped at 2%: what Tuesday's two housing decrees change. On Tuesday 29 September 2026 the Spanish Council of Ministers approved two separate housing decree-laws that cap annual rent rises at 2% (Idealista) and let tenants extend leases expiring before 31 December 2028 by two years (La Tercera).

Housing Minister Isabel Rodríguez presented the texts at a press conference after the cabinet meeting, as Menorca Info, the website of Es Diari, reported. The same outlet adds a detail from behind the scenes: the meeting started an hour late because PSOE and Sumar disagreed over what the decrees should contain. The outcome is two texts, not one. El Independiente explains that the first holds the measures negotiated with PNV and Junts and the second the measures Sumar insisted on.

The sources disagree on one point that matters to tenants, which is how the two-year extension works. Menorca Info describes it as an automatic renewal. La Tercera says the tenant has to request it, and only qualifies after paying rent regularly for the previous 8 months. Until the official text is published in the Boletín Oficial del Estado, assume that you will have to apply for the extension yourself.

The package goes beyond rents. Idealista reports that protection from eviction for vulnerable families with no alternative housing now runs until 31 December 2030, and that investment funds, including so-called vulture funds, are banned from buying homes speculatively for two years, until 2028. Moncloa.com notes a new rule for room rentals: the combined rent of all the rooms in a flat cannot exceed the cap set for renting the whole flat. Ultima Hora adds income tax (IRPF) cuts for small landlords who voluntarily lower their rents, plus 0% public loans of up to 50,000 euros for first-time buyers. It also reports that an early plan to raise VAT on holiday lets to 21% was dropped.

In the Balearic Islands, Ultima Hora cites a government estimate from March 2026 of around 25,000 families or rental contracts that could benefit from the extension. This is an estimate, not an updated official count. The regional government led by Marga Prohens (PP) has not declared any area a stressed market (zona tensionada) and prefers its own tools to ease rent pressure, and the Balearic Parliament rejected an archipelago-wide declaration, saying the tool has no real effect. Ultima Hora also reports the local reactions: Més wants the decrees applied firmly, while Vox calls them an electoral move and wants to see the fine print.

What it means for you: if your lease ends before the end of 2028, keep proof of every rent payment and be ready to request the extension in writing. Don't agree to a rise above 2% while the rules are being settled. If you rent a room, compare the total rent paid for the flat with what the whole property would cost. Press Digital says the Congress of Deputies votes on both decrees in an extraordinary plenary session on Friday 2 October 2026. Menorca Info warns that the Sumar decree may not get enough votes, so treat those measures as provisional.

Weather today

Showers possible in Palma and Sóller, dry in Maó. Open-Meteo forecasts scattered showers in Palma on Tuesday 29 September 2026, with lows of 23 and highs of 27 degrees, a 30% chance of rain and wind up to 12 km/h.

Further north, Sóller has the highest chance of a wet spell, at 48%, with temperatures between 23 and 28 degrees and wind up to 10 km/h. On Menorca, Maó stays under an overcast sky with no rain expected (0%), between 23 and 28 degrees, but it is the windiest spot at up to 17 km/h. Dress light and keep a compact umbrella in your bag on Mallorca, especially if you're heading to the Tramuntana side of the island.

Transport & traffic

• Car fire on Ibiza's airport road. A car caught fire on the carretera de l'Aeroport in Ibiza, near Sant Jordi and opposite the Miró offices, and Periódico de Ibiza filmed it. This road is the main route between the airport and Ibiza town, so an incident here can slow traffic for travellers. The source gives no details on how long traffic was affected. If you have a flight soon, check the local traffic updates before setting off and allow a little extra time.

What's changing for you

• Palma's housing protest camp stays put. Ultima Hora reports that the housing protest camp in Palma's Plaça d'Espanya will stay for at least one more night, after an open assembly held by participants on Tuesday 29 September 2026. The square is next to Palma's intermodal station for trains and buses. If you pass through, expect a visible presence, and if you have a view on housing, the camp's assemblies are open to the public. It comes on the same day as the national housing decrees, which the protesters will be following closely.
• GOB questions green lawns in Menorca during water limits. According to Es Diari, the Menorcan environmental group GOB has asked the councils of Es Castell and Es Mercadal about lawns in several tourist developments that are still green despite the water restrictions in force. If you live in either municipality, water restrictions apply to you too. Check your council's current rules before watering a garden or filling a pool, and remember that your community of owners is also responsible for how shared green spaces are watered.

Local news to know

• Roster moves at Sa Tintina Es Castell. Sa Tintina CB Es Castell, coached by Marc Díaz from Catalonia, has lost a player for good and is about to sign another, just days before its first official game of the 2026-27 Tercera FEB season, as covered in Es Diari.
• Ambulances reach 53.5 degrees inside in Ibiza. In a statement relayed by Periódico de Ibiza, the USAE union says GSAIB ambulances based in Sant Antoni reached 53.5 degrees Celsius inside on Monday 28 September 2026 and calls for urgent measures.
• Ryanair's biggest jet due next spring. The Majorca Daily Bulletin says Ryanair expects to receive its first Boeing 737 MAX 10 next spring, a model that will carry up to 230 passengers and become the largest-capacity aircraft in its fleet.
• Green rain notices apply to the Canaries only. The rain notices Meteoalarm lists for Spain on Tuesday 29 September 2026 are at green, the lowest level, and cover the Canary Islands, from Gran Canaria and Tenerife to Lanzarote, not the Balearics.

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