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Home Europa Press

Adeje City Council in Tenerife to Declare ‘Stressed Area’ Status

March 26, 2024
in Europa Press
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Adeje City Council in Tenerife to Declare ‘Stressed Area’ Status
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SANTA CRUZ DE TENERIFE, 26th March (EUROPA PRESS) –

The governing body of the Adeje City Council plans to propose in the next municipal session the initiation of procedures to declare the municipality as a ‘stressed area’ in the property market, making use of Law 12/2023, enacted on 24th May, regarding the right to housing approved by the Spanish Government.

The first step in implementing this declaration is for the entire council to approve a motion urging the Government of the Canary Islands to conduct necessary studies to assess the socio-economic indicators that would justify the designation of a stressed area.

Therefore, it is essential to define, with official statistics, whether the residents of Adeje spend at least 30% of their income on housing, or if property purchase or rental prices have increased by more than 3 points above the CPI over the previous five years. This study could be conducted on a district or town basis within the municipality itself.

Mayor José Miguel Rodríguez Fraga has recognised the “significant problem” of housing access for many citizens and employees, emphasising that efforts must be made to address it.

The mayor acknowledged that there is no one-size-fits-all solution, and that time will be required to tackle the issue effectively.

“This is why we are framing this initial measure of requesting the classification of a stressed zone as part of a broader and more ambitious plan we are developing and will be announcing soon,” he stated.

This plan will involve constructing more residences, maximising available land, and collaborating with other authorities and organisations to create housing for the working population.

This initiative allows tenants in a stressed area to reduce their rental payments by 5% in exchange for tax incentives that could reach up to 90%. The tax deduction would be 70% if rented to young people aged 18 to 35 for the first time or if the property has been renovated or enhanced, in accordance with the motion to be presented at the council session.

Additionally, landlords who sign a minimum 10-year lease will be permitted to bypass rent controls and increase rent by up to 10% in return for prolonging the lease term.

Development of 45 Residences in Armeñime

Adeje has already arranged, through transferring plots to the Government of the Canary Islands, the construction of 45 residences in the Armeñime area, with plans to allocate more land to increase this number.

Over the past thirty years, it has implemented housing schemes that have introduced over 1,000 homes to the market for the working population.

“It is a path we have previously taken and can tread again because we know how to do it, and our first step, alongside this imminent measure, is to make available land to facilitate such projects,” expressed the mayor.

Through designating a stressed area, Adeje aims to help control rental prices, offer assistance to homeowners putting their properties on the market, and implement tax incentives and other measures to influence and reduce prices in the near future, preventing unwarranted increases every time a lease is renewed.

The municipality is willing to be a pioneer in implementing these regulations, despite the challenges it may pose, firmly believing that every initiative should contribute towards alleviating a problem that is escalating daily.

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