Spain’s new government includes a hard-left party that has made housing affordability one of its signature issues, so more intervention in the housing market should be expected, according to Spanish Property Insight.

The left wing coalition of centre-left Socialists led by Pedro Sanchez, and hard left Podemitas led by Pablo Iglesias, managed to put together a parliamentary majority of just two seats on 7 January to vote for the investiture of Spain’s first coalition government since before the Civil War.

However, there were 18 abstentions, including the Catalan separatists of the ERC party, which means the coalition will be a hostage to conflicting interests from day one, and could be brought down at any time.

Mark Stucklin, owner of the Spanish property information website, added: “The Socialists-Podemos coalition itself looks unstable, with bad blood on both sides papered over by the coalition agreement they have signed. The government is barely a week old, and the bickering over ministerial appointments has already started.

“As housing affordability was a key campaign issue for Podemos, it’s reasonable to expect them to push the government further left and intervene more heavily in the housing market than the Socialists might have on their own.

“Amongst other things, Podemos want to impose rent controls, prevent evictions, protect squatters, go after investors whom they see as “speculators and vulture funds”, and clamp down on tourist rentals.”