La Palma rental ban

The council of La Palma in Mallorca has voted to ban all holiday rentals in the city centre, in a move that will be closely observed throughout Spain.

The left-wing council took the decision after complaints about the shortage of long-term rental accommodation in the city, which had caused spiralling rent prices. The decision of owners to rent to holiday-makers through sites such as AirBnB is widely agreed to have led to the shortage of residential lets.

Nevertheless, the ban will have the immediate effect of lowering the value of properties in the city centre, while chalets outside the city, which will still be eligible to let, may increase in value. The result will be the poorer rental owners losing out to wealthier chalet owners.

For more Property Shorts see our June magazine.