Canary Islands takes first steps to limit the number of holiday homes

The Government of the Canary Islands have announced they are planning to limit the construction of new buildings exclusively designated for holiday homes, according to the draft of the upcoming Law on the Regulation of Tourist Use of Housing.

The Minister of Industry and Tourism, Jessica de León, has highlighted that 5,083 contributions were made by the public, who were invited to put forward their opinions and ideas to combat the housing crisis involving holiday lets over residential rentals, and how to control the number of holiday properties.

Miguel Ángel Rodríguez, the Director General of Planning and Tourist Promotion of the regional government stated that "aspects highlighted by the public, such as concerns about sustainability, quality, or competitiveness, have been taken into account."

Among the public initiatives, one noteworthy proposal is the creation of a distinctive quality seal to identify holiday homes that meet specific requirements related to services or amenities. Another suggestion is to limit the environmental impact of such accommodations, proposing minimum energy efficiency standards, such as the installation of renewable energy sources, waste separation, compliance with noise regulations, and adherence to RITE regulations for thermal installations. This could quite easily lead to a high number of VV licences already issued being revoked.

In response to public input, the role of the homeowners' association will play a significant role in allowing or disallowing the establishment of a property as a holiday home, ensuring that this activity does not disrupt the quality of life for residents.

The report explains that recent jurisprudence from the Supreme Court supports this stance, and its interpretations will define the possibility and manner of implementing holiday homes in buildings subject to horizontal property regimes and classification of use.

Regarding this matter, the Ministry emphasises that municipalities, through urban planning, will have the authority to limit the number of holiday rental properties in a building, aiming to prevent the risk of gentrification and tourism-related changes.

Similarly, municipalities will be responsible for determining the height or floor where a holiday home can be located, as requested by many of the contributions received. However, in cases where municipal planning does not address this issue, the law to be enacted by the Government of the Canary Islands will include subsidiary application rules.

Furthermore, in response to public suggestions, the law will determine the number allowed in each territory based on sustainability indicators. The study emphasises that the future law must consider "the level of human or tourist pressure that each population centre in the Canary Islands can bear, which varies depending on the island, and cannot ignore the legal framework regarding the constitutional right to adequate, dignified housing at affordable prices."