Adeje, the Most Popular Municipality in Tenerife, Calls on the Canary Islands Government to Begin Procedures to Declare Itself a Stressed Area

The municipal council of Adeje, the most popular municipality in Tenerife, approved a socialist motion on Wednesday urging the Government of the Canary Islands to start the procedures to designate the southern municipality as a “tensioned zone”, as allowed by state law 12/2023.

The resolution received support from CC, PP, PSOE, and Unidas Podemos, while Vox voted against it. With this approval, the municipality asks the Canarian Government to conduct studies to assess the socio-economic parameters supporting the aforementioned designation, as previously announced by the local government in March.

According to José Miguel Rodríguez Fraga (PSOE), the mayor of Adeje, the municipality meets the two conditions established by the law: residents spend at least 30% of their income on housing, and property prices have increased by more than three points above the CPI of the Autonomous Community in the last five years.

The regulation allows tenants to reduce rent by 5% in exchange for tax credits of up to 90%. The discount is 70% for rentals to young people aged 18 to 35 and 60% for rehabilitated or improved properties,” the motion states.

Homeowners signing a minimum 10-year contract can increase rent by up to 10% beyond the price freeze in return for extending the contract duration.

With Adeje’s declaration as a stressed area, the municipality aims to curb rental prices and provide assistance to homeowners putting their properties on the market.

The goal is to implement tax credits and other measures to lower prices in the upcoming months, preventing exorbitant increases when renewing rental contracts.

The agreement of Adeje’s municipal council also encompasses other municipal decisions related to an amendment presented by Unidas Podemos.

Apart from Adeje, La Orotava and Granadilla have taken similar actions, whereas Santa Cruz de Tenerife has commissioned a study on the matter to a company.

Canarian Government Rejects Housing Legislation

The Canary Islands Government, led by CC and PP, has the final authority to declare stressed areas and submit the formal request to the Ministry of Housing. Currently, the regional government, acknowledging a housing crisis in the islands, has opposed declaring tensioned areas and the housing law in its entirety (mentioned appealing it in the Constitutional Court, which was eventually not pursued), citing the availability of alternative solutions like the recently approved urgent housing measures decree in Parliament.

Half a dozen housing policy experts have been consulted by Canary Islands Now to gather their views on this decree. They stress the need for caution, highlighting the absence of a “magic solution” for the housing emergency, which is more of a structural rather than a conjunctural issue. Most of them advocate for immediate actions such as acquiring vacant properties or regulating rents, as relying solely on construction will take years to yield results, if at all.

The experts concur on the significance of rent regulation and incentivising the use of empty housing until a balance is achieved with social housing, which should constitute 40% of the supply but currently makes up just 1%. These measures are expected to have a notable short to medium-term impact, yet they are not incorporated in the regional government’s legislation.

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