Spain is usually chosen as an example of an unbalanced picture among tenures. The owner-occupied sector has been growing since the 1950s while the rental sector has become smaller. Surprisingly, other European countries are at present following the same pattern, but mostly we also see an important function for social housing. Taking into account that public housing, built by public developers, is almost negligible and that government housing policy programs basically stimulate ownership, the ‘social housing’ concept lacks an adequate definition in Spanish housing policy. In this sense, the encouragement of the rental sector through a public policy should provide an alternative for low-income families. Despite different cultural housing backgrounds, the emergence of a reliable rental sector in Spain appears to be the most promising strategy for solving current housing problems. The aim of the paper is twofold. On the one hand, it analyses the evolution of the rental sector through recent decades, stressing how different central government regulations have affected the tenure structure in Spain. On the other, it considers the rental sector as a potential instrument for authorities to meet the housing needs of low-income families. Housing policy still plays a crucial role in offering the opportunity for certain groups to access a suitable house. What can be called the ‘European shift ’ to the market can cause irreparable damage to those families that have benefited from former, direct or indirect, public means.

The rental sector in Spain has experienced a dramatic decrease in recent decades. The housing stock available for renting is considerably smaller than in other European countries. The decrease is undoubtedly the supply response to severe economic conditions and to the strict regulations of the sector. A direct consequence of the reduction has been the profound increase in rent which, at present, prevent a determined demand segment access to this type of dwelling. Rental demand in Spain is mainly a captive demand, formed by collectives in a precarious labor situation or with not enough income to access ownership. Supply is in private hands and there is a lack of qualified and professional suppliers. The objective of the paper is to consider the need for social housing policy as an alternative to the established tenure in Spain.