SANTA CRUZ DE TENERIFE, 3rd April (EUROPA PRESS) –
During its regular session on Wednesday, the Adeje City Council plenary has endorsed the request to the Government of the Canary Islands to initiate the procedures for declaring the municipality as a stressed zone according to Law 12/2023, dated 24th May, concerning the right to decent housing. The motion, put forward by the socialist group, garnered approval from the Canarian Coalition, the Popular Party, and Unidas Podemos, with Vox voting against.
The council also agreed to incorporate the proposed amendment by Unidas Podemos, which includes urging the Spanish State to inventory and assess the assets of the Administration and Public Bodies; pressing the Government of the Canary Islands to provide the necessary resources for the proper implementation of the reference index for rental prices of housing in the community, and disseminate the agreements to FECAM.
Adeje’s Mayor, José Miguel Rodríguez Fraga, mentioned their intention to utilise this measure as an additional tool within a range of measures they aim to implement to address the housing issue. “We are dealing with a complex issue that requires time, and we are exploring the possibilities that national law and the Canary Islands government decree give us with this measure. We need to establish frameworks that enable workers to access housing within their salary and financial means,” he added.
Thus, the process commences for the Government of the Canary Islands to conduct the necessary studies to evaluate the socio-economic parameters essential for the declaration of a stressed area. A recurring question during the plenary was whether the rent reduction measure would be obligatory or voluntary. The mayor clarified that these measures are voluntary for property owners, who can choose to adhere to them or not. Individuals benefiting from the measures may enjoy tax benefits of up to 90% in their income tax returns.
Another crucial point stressed by the Mayor of Adeje is that this measure alone will not solve the housing problem in Adeje. Instead, it is part of an ambitious, intricate plan that needs to consider various aspects, such as the construction of officially protected housing, land acquisition for building these homes, incentives for private companies to develop affordable housing, and more.
THE IMPLICATIONS OF BEING DECLARED A STRESSED ZONE
The study will offer official statistical data on whether Adeje residents dedicate 30% of their income to housing or if there has been a rental or purchase price increase exceeding CPI by 3 points in the previous five years. This study could be conducted by specific areas or population centres within the municipality itself.
Initially, the study will determine the affected area, areas, or whether the entire municipality is impacted. Subsequently, in a stressed area, tenants interested in benefiting from the measure may need to decrease their rent by 5% in exchange for tax breaks reaching up to 90%.
The deduction would be 70% if the property is rented for the first time to individuals aged 18 to 35 or if the property has been renovated or enhanced; in such cases, the bonus will be 60%. Additionally, landlords who sign a contract lasting at least 10 years can bypass the rent freeze and may increase the rent by up to 10% in return for extending the contract duration.
Adeje has already set plans in motion, handing over plots to the Government of the Canary Islands for constructing 45 homes in the Armeñime area and preparing to allocate more land to increase that number. Over the last three decades, it has launched housing schemes resulting in over a thousand homes being made available to the local workforce. “It’s a path we’ve already trodden and are prepared to tread again because we know how to do it. Starting with the approval of this measure, we aim to enable land for the development of such projects,” stated the mayor.