A report by El Diario de Lanzarote claims that the recently introduced Canarian Law on Holiday Rentals has not only failed to increase the number of residential rentals on Lanzarote but has actually reduced them.
Representatives of the island’s real estate sector interviewed for the article claim that very few owners have moved into the residential market but have simply removed their properties from the market altogether.
They claim that the problem is not holiday rentals, it is the legal insecurity that national law provides for landlords, which removes control of properties for a minimum of weight years.
This has also affected property sales, which have fallen by 70% according to one professional, who says that buyers are reluctant to purchase properties as investments.
Other estate agents comment that owners who have converted their properties to residential lets have failed to reduced rents, leaving them out of reach for most islanders.
The report also quotes Elsa Betancort, of the Platform for Decent Housing, who claims that “there is no residential renting market”. She points out the increased amount of families and workers choosing to live in mobile homes, and claims that younger professionals, such as teachers and nurses, are choosing not to move to Lanzarote because of high rents and house prices.
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