An elderly woman whose eviction sparked nationwide protests over Spain’s housing crisis and a political row that triggered early elections has died, according to Madrid’s tenants union.

Maricarmen Abascal, 87, was forcibly removed on a stretcher from her apartment of more than 70 years on 23 September after she was unable to afford rent increases.

The company that owned the flat later offered to allow her to return at a lower rent rate – but she wasn’t able to sign an agreement as she had been admitted to hospital.

“We regret to announce that Maricarmen passed away today,” the Madrid Tenants’ Union said in a statement, adding that her situation marked “a turning point in the history of this country”.

Abascal became a symbol for Spain’s housing crisis following her eviction.

Her father first rented the property in 1956 and she continued as the tenant after her parents died, during which time there was a cap on the rent.

However, a legal glitch allowed her landlord, investment company Urbagestión, to raise her rent from €500 (£428; $572) to €2,650. It was later lowered to €1,650 – still €300 more than her monthly pension.

Three previous attempts to evict her were blocked by the courts and the case has received increasing media attention.

Anger over the situation grew, leading to protests and putting pressure on the coalition government to approve emergency housing legislation – but it was rejected in Congress last week.

That led to further protests, with tens of thousands of people taking to the streets in cities across the country over the weekend.

Referring to the rejected bills, the Madrid Tenants’ Union said: “While a historic agreement was reached that would have allowed her to return to her home, this solution has come too late. An absolutely avoidable situation after a torturing process.”

It said the events surrounding her eviction represented a turning point in the country’s history, but added that the cost to get to this point had been “too high”.

“Above all, we will fulfil what she always asked of us: ‘fight, keep fighting for what is yours,'” it said.

“All my love goes to Maricarmen’s family and loved ones,” Spanish Prime Minister Pedro Sánchez said. “A hug as well to everyone who today feels this loss as their own.”

Protesters gathered at one of Madrid’s main squares, Puerta del Sol, following the announcement of Abascal’s death. The site has become a protest encampment for protesters over the last two weeks.

Earlier on Wednesday, unions had called a general strike to take place on 11 November, demanding housing reforms.

The public outcry over Abascal’s situation has led to political turmoil in Spain.

On Monday Sánchez, who leads a leftist coalition that does not hold a majority in parliament, called an early election for 29 November. It followed his failure to get the emergency housing legislation through Congress.

The political right had argued that the government’s attempt to intervene in the housing market would have led to fewer homes being rented and would have raised prices further.

Speaking on Monday, Sánchez said he needed “a broader progressive majority” that can “overcome the resistance of the elites” to push through reforms.

Other issues not relating to housing, such as numerous corruption scandals linked to his party, and pressures relating to the cost of living and immigration, have also caused him problems.

Most opinion polls suggest the conservatives are likely to emerge as the largest party in the next election. However, they would be expected to need the support of the hard-right Vox party to form a government.

Additional reporting by Tom McArthur