Spanish Prime Minister Pedro Sanchez Calls Early Election

Spain's prime minister, Pedro Sánchez, has called an early election as the country grapples with a housing crisis.

In a televised address to the nation, Mr Sánchez said the election would be held on November 29.

"We need to renew people's support," the prime minister said.

The leader also acknowledged that he had made mistakes and fallen short of campaign promises.

"I also know that part of that social majority is dissatisfied today," he said.

The announcement comes after parliament rejected housing relief measures proposed by his government as tens of thousands gathered in Madrid over the weekend to demand affordable housing.

Protests were sparked by the eviction of an 87-year-old woman from her Madrid apartment of more than 70 years by an investment firm.

In response, tent cities have been erected in Madrid, Barcelona, Seville and even the tourist mecca of Palma de Mallorca in the Balearic Islands.

Over the past decade, the average rental price in Spain has almost doubled, reaching 15.10 euros ($24.62) per square metre in August, according to real estate portal Idealista.

The Bank of Spain estimates that the country of about 50 million people is short of 700,000 homes, based on the gap between housing demand and new construction.

Social housing in Spain makes up less than 2 per cent of the housing stock, according to data from the Organisation for Economic Co-operation and Development.

Protesters in Madrid have welcomed the snap election.

A man named Florencio said, "It has been a great victory for the protests in the streets. Until last week, we could not have imagined that this would happen."

Sandra told Reuters, "To be honest, I'm a bit worried about what might happen. But it's certainly true that with the government we have things aren't moving forward."

Ricard said, "What will happen? Well, the world is in a state and we're afraid. We'll see."

"Hopefully it will be a government that continues to want to give us rights, or to solve the housing problem, rather than one that takes them away from us," he said.

Measures proposed by Mr Sánchez's minority government, including automatic renewal of tenancy contracts and restrictions on evicting vulnerable tenants, were voted down by opposition parties in Spain's parliament.

He also planned to stop "vulture funds" from buying in bulk and then reselling properties at higher prices, and to introduce a new tax on seasonal rentals.

Opinion polls suggest a coalition led by the conservative People's Party (PP) with the support of the conservative Vox party is the most likely outcome in Spain, ushering a far-right party into central government for the first time since the return of democracy after the death of dictator Francisco Franco.

Still, Mr Sánchez has proven time and again his ability to surprise those who had long written him off.

Despite never winning enough votes to form a majority government, he has cobbled together a series of fragile and seemingly impossible coalitions, including voices from the far-left to the separatist right, to remain in power for three successive terms over eight years.

But growing fragmentation among his partners has meant the government has passed little legislation in its third term and failed to pass a budget since 2023, even as Spain's economy has continued to be one of the best-performing in the developed world.