Canarian Weekly – PSOE calls for suspension of new VV licenses as they affect the quality of life of locals

The Spanish Socialist Party (PSOE) has called for a temporary halt to the issuing of new VV licenses for holiday rentals in response to what it sees as “distorted growth” as a result of the new holiday law proposed by the Canary Islands government.

In a session of the Canary Islands Parliament on Monday, Rosa Bella Cabrera of the PSOE presented a motion calling on the government to “immediately and temporarily suspend the issuance of new VV licenses in Gran Canaria, Tenerife, Fuerteventura and Lanzarote until the new law is fully adopted.”

The party’s statement attributes this to landlords’ reaction to the regional government’s new regulations, which threaten residents’ access to housing.

Impact on the housing market:

Cabrera stressed that the speculative growth fuelled by the government’s proposed law must be stopped as it has significantly affected the local real estate market. She pointed out that the Canary Islands rank fourth in Spain in terms of the number of tourist accommodations.

She continued to criticise their approach, stressing: “From 2015 to 2023, over 40,000 new holiday rental properties were approved, and a further 15,000 have been added since the draft law was announced in September 2023.”

This represents growth of 42.6% compared to the previous year. This compares to a decline of 1.2% in holiday rentals in the Balearic Islands over the same period.

Suggested solutions:

Cabrera suggested that while the amendment to the law is being processed, the government should impose a temporary moratorium on new licenses by decree law, similar to the suspension of new gambling licenses by the previous government.

She warned that current growth is unevenly distributed across the islands, with Tenerife, Gran Canaria, Lanzarote and Fuerteventura being hit hardest by the negative effects and having the greatest problems with housing supply.

Regulatory and enforcement measures:

Cabrera also stressed that, given the existing legal situation, it may be too late to implement effective restrictions once the new law is approved by the Canary Islands Parliament. He said that once the bill is introduced, legislators will have to face the new reality, citing the 2001 Urgent Measures Law, which successfully curbed growth in the hotel and apartment sector, as a precedent.

The motion calls for an increase in inspector staff to accurately determine the number of illegal holiday rentals in the Canary Islands and to assess those that already have a license that could be revoked during an inspection.

In addition, it advocates the establishment of a management dashboard to monitor accommodation trends on the islands in order to ensure a uniform quantification criterion.

Balancing tourism and local impacts:

While recognizing that holiday rentals can spread tourism in the region and benefit low-income families, the PSOE stresses the importance of curbing the disproportionate growth driven by speculative expectations. It concludes that the current trend is negatively affecting the quality of life in the area and requires immediate regulatory intervention.