About 50 planned marches were expected to take place in cities such as Madrid, Valencia and Barcelona on Saturday - with some already under way.

"There is a lot of anger in the streets," said a spokesperson for the Valencia Tenants' Union, where a demonstration has already started. Clashes have taken place between some protesters and police in the city. The measures put forward by Pedro Sánchez's leftist coalition government on Friday followed public outcry over the eviction of an 87-year-old woman from her home last month after she was unable to afford a sharp rent increase.

Her eviction triggered nationwide protests across Spain with protesters demanding lower rents, an end to evictions, and a ban on investment funds - or "vulture funds" as the government has termed them - buying property. Sanchez's defeat in Congress on Friday heightens speculation that he might call an early general election, which was not due until next summer. His coalition government, made up of his ruling Socialist party and junior partner the Sumar alliance, does not command a majority in parliament.

Photographs showed protesters in the east coast city of Valencia clashing with police officers on Saturday near arts centre Palau de les Arts Reina Sofía, which was hosting a real estate summit. Several protesters removed barriers and threw objects at officers, who responded with rubber bullets, Spanish media reported. The biggest demonstration was expected to take place in the capital Madrid. Demonstrators have been camping in one of the city's main squares, Puerta del Sol, for days. One protester, David, told Spanish public broadcaster RTVE ahead of the protest: "We're not here for pleasure or comfort. We're here out of conviction."

On Friday night, the Madrid's Tenants' Union said that although the government's proposed measures were insufficient, the rejection of the proposed legislation "exacerbates the housing crisis which is costing the working class their lives". It is calling for a general strike over the housing crisis. (BBC)