Spain's government eyes rent controls in new housing bill

Spain’s left-wing ruling coalition says it wants to rein in soaring housing costs by imposing rent increase caps on landlords who own 10 or more residential properties

MADRID -- Spain's left-wing ruling coalition wants to rein in soaring housing costs by imposing rent increase caps on landlords who own 10 or more residential properties.

Opposition parties and leaders of business organizations have criticized the proposal as an improper intervention in the free market by Spanish Prime Minister Pedro Sánchez's government.

Government ministers approved draft rent control legislation during a weekly Cabinet meeting on Tuesday. Vulnerable families and young adults in Spain's biggest cities would be the main beneficiaries of the proposed law, the government said.

Low salaries and a 35% youth unemployment rate — the highest among the 19 nations that use the shared euro currency — mean that many Spaniards cannot afford to live on their own. They leave the family home at an average age of 30, compared to a European Union average of 26.4 years old.