SANTA CRUZ DE TENERIFE, 27th March (EUROPA PRESS) –
The mayor of Santa Cruz de Tenerife, José Manuel Bermúdez, has commissioned a study tasking Housing, Projects and Municipal Works, SA to conduct an analysis aimed at determining if the conditions are met in the municipality to potentially declare it a stressed residential market area.
Bermúdez has instructed to provide detailed conclusions in the report, outlining the necessity of potentially requesting the Government of the Canary Islands to initiate procedures for obtaining such a declaration if the conditions specified in article 18 of Law 12/2023 are satisfied. He emphasised that the report should also specify any potential impact on the real estate market and other relevant circumstances.
The request for declaration must be submitted by the Government of the Canary Islands along with a specific plan outlining the necessary measures to address any imbalances identified in the area for which the declaration is sought, as communicated by the City Council.
This assignment and instruction are significant as they are driven by the need for a report supported by objective data indicating a special risk of inadequate housing supply for the resident population when the burden represented by mortgage or rent costs in the personal or household budget, in addition to essential expenses and supplies, exceeds 30% of the average income or household income.
Alternatively, if the purchase or rental prices of homes have risen, in the five years prior to being declared a stressed housing market area, by a percentage with an accumulated growth rate at least three percentage points higher than the cumulative growth rate of the consumer price index of the corresponding autonomous community.
The legislation also considers, as notable consequences of this declaration, the potential to regulate housing rental prices within a pre-established range based on factors such as the year of construction, area, or location. This range serves as a reference for determining the rental amount in new contracts, especially for properties owned by individuals classified as large holders and for homes rented for the first time in five years.
