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Home Diario de Avisos

Adeje’s Severe Housing Crisis Sparks Unprecedented Measures

March 27, 2024
in Diario de Avisos
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Adeje’s Severe Housing Crisis Sparks Unprecedented Measures
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The Mayor of Adeje, José Miguel Rodríguez Fraga, announced yesterday his intention to propose to the upcoming municipal plenary session the initiation of procedures to request the Government of the Canary Islands to designate a “stressed market area” under the new housing legislation. This tool aims to regulate the soaring rental prices in the southern municipality and across the region.

This measure, valid for three years with the possibility of extension, allows for imposing restrictions to regulate the housing market and guide public interventions in locations where there is a particular risk due to the lack of available housing options.

Adeje believes it meets both criteria set out in the law (though meeting just one is sufficient): residents spending at least 30% of their income on housing or property prices/rent experiencing increases exceeding the region’s CPI by three points over the last five years.

URGENT SITUATION

In light of the critical housing situation in the municipality, Mayor José Miguel Rodríguez Fraga described the stressed area declaration as a means to “regulate rental prices and incentivize homeowners to offer their properties on the market with tax benefits.” He acknowledged that this is only a temporary solution, stating that “there is no one-size-fits-all solution to this very serious problem.”

The councillor from Adeje confirmed that they are working on a more comprehensive plan, including the construction of additional housing, making use of available land, and forming partnerships with other bodies to develop homes for the workforce.

The local council highlighted that over the past thirty years, more than 1,000 affordable housing units have been made available, with plans underway for the construction of 45 homes in Armeñime and the potential for more in the future.

The motion to be presented at the plenary session on April 3 outlines the possibility for tenants to reduce rent by 5% in exchange for tax credits, potentially reaching up to 90%. The deduction could be 70% for first-time rentals to individuals aged 18 to 35 and 60% for refurbished properties.

Therefore, with this declaration, Adeje, being the Tenerife municipality with the largest number of hotel beds, aims to regulate rental prices, support landlords putting properties on the market, and provide tax benefits to ease price hikes during lease renewals.

CANARY ISLANDS GOVERNMENT

The Canary Islands Government responded cautiously to Adeje’s announcement, suggesting that it may not have a significant impact on housing issues. The regional Executive spokesperson, Alfonso Cabello, expressed a preference for a strategy combining urgent legislation measures with forthcoming holiday housing laws, deeming them more effective than stressed area designations. Cabello mentioned that requests from municipalities will be reviewed individually, without confirming preconceived stances, particularly noting the autonomous communities led by the Popular Party’s disinterest in rent price controls.

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