On November 12th, the Canarian Government passed the Law of Sustainable Planning of the Use of Tourist Accommodation, the controversial law that will radically affect holiday rental (VV) owners and town halls on the island.
The law was passed with the support of the Coalición Canaria (CC) and the Popular Party (PP), the two main parties in the regional government’s ruling pact. It was opposed by the Socialists and Nueva Canaries, who claim it will favour hoteliers and large property owners and do nothing to ease the housing crisis.
The law aims to limit the offer of VV properties in every one of the island’s municipalities to just 10% of overall housing stock, and will add a hefty workload to every Ayuntamiento (council) in the islands.
As a result of the vote, the Canarian Government will send all Ayuntamientos in the Canaries a list of registered holiday lets in their area and require them to draw up inspection plans within a space of eight months.
They will then have five years to apply the law. All new and existing VV licences will last for five years before re-application is required. This means that the law will not initially affect the sector, and that the housing problems that are alleged to be caused by VV accommodation are likely to remain in the short term.
All VV accommodation must have a minimum living space of 35 square meters (25 if there are amenities such as a pool or parking space), a minimum energy efficiency rating of class F or D,), and the installation of a solar water heating system “when technically and legally feasible.”
The law will make it far more difficult to register a property as a holiday rental, which is why so many owners have rushed to register their properties in the last two years. This rush meant that the amount of registered tourist beds offered by holiday lets in the Canaries recently exceeded the amount of hotel beds, but the law is expected to lead to a drastic reduction in the amount of holiday lets as the newer, stricter regulations are applied.
ASCAV, the Canarian Association of Holiday Rental Owners has been bitterly critical of the law, which it claims will “eradicate” holiday rentals owned by families. They say the law “favours large landlords and investment funds” and will do little to ease the housing crisis, as 67% of holiday rentals are in tourist areas where residential lets are forbidden.
ASCAV estimates that up to 85% of holiday rentals will not fulfil the new conditions to operate as a “classified activity” (one that can cause annoyance or environmental problems).
They also believe the law will threaten property management firms and cleaning and maintenance services which cater to the holiday rental sector.
If you own a VV property, we would strongly recommend getting reliable professional advice on how to proceed.
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