Experts say the new Spanish law allows British tourists to visit “collapse.” The Spanish government has passed a new law that requires that all landlords who provide property on a seasonal basis register in a new short-term rental registry system conceived to maintain the tab.
However, industry experts say Brits has decided to go somewhere else to go because of punitive restrictions.
If you do not apply for this new rental code, the landlord will be fined up to 500,000 euros on July 1st. The new law primarily targets rentals for less than 60 days, and Spain defines them as “short-term rentals.” The impact of these new restrictions will not be affected for more than 60 days.
Real estate experts said today that thousands of short-term rentals, including Airbnb, could be pulled out of the market. Experts fear that the law will rise by up to 20% in hotspots and limit options for vacationers who may be pushed into hotels instead.
They also said, “Nearly half of the rental applications are still stuck in bureaucratic purgatory, with thousands of British people being locked out of the favorable short-term market, and their wealth can't be sustained all of a sudden.”
The new register requires all property used for tourist and short-term holiday rentals, as it has a registration code required to operate legally.
Figures released by the Spanish Ministry of Housing show that a total of 199,686 applications have been received so far, making it the majority of rentals for the majority of tourists. Of these, 90,046 registrations have already been approved, while 17,596 have been denied. Meanwhile, more than 92,000 subscribers are still under review.
Sarah Kenny, director of Build a Break, warned that he would “raise prices” due to “limited options” for British and families on vacation in Spain. She added: “We are a travel platform that helps families plan affordable holidays, and as a family of six of our own, we know first hand how important the right accommodation is when we travel.
“We regularly rely on short-term rental platforms similar to Airbnb, especially when visiting destinations like Spain. These types of stays often provide the most practical and affordable setup for large families with multiple bedrooms, communal living spaces and kitchen facilities.
“Hotels rarely offer this combination without significant costs or booking multiple rooms. We are worried that if new Spanish regulations significantly reduce the number of properties in booking, they could boost prices and limit options for families like us.
Rob Peters, principal of Simple Fast Mortgage, said holiday British people could be forced into more expensive hotels. He added: “The golden age of Spain's simple Airbnb cash is over. These rules could change the Spanish real estate market.
“We expect short-term rental prices to rise as supply is squeezed and tourists are pushed back to hotels, while long-term rental stocks will surge as owners pivot, allowing locals to soften prices.
Emma Jones, managing director of Whenthebanksaysno.co.uk, said it could also affect Britons who run facilities overseas on Airbnb. She continued. “Many UK holidays turned to Spain when the UK government increased the costs associated with running short-term rentals here.
“The loss of Airbnb in Spain, or the major restrictions on the platform, will have a major impact on the UK owners who rely on it to generate income.”
Pete Mgreston, Mortgage Advisor and Managing Director, online mortgage advisor, said Brits will look to throw their property away in Italy, Greece or Portugal rather than Spain.
He continued. “If you're a Britt with property in Spain that you've made through Airbumb, these changes will cause you to pull out your hair. Spanish authorities have done this because locals have been deprived of prices from the housing market in recent years due to the explosion of the short-term rental market.
“This adds another layer of complexity to rent your property and can be the ultimate straw for many people as they choose to sell rather than rent.
“As a result, British people seeking to buy holiday homes overseas for rent will turn their attention to other countries such as Italy, Greece and Portugal, where regulations are not strict.”
Airbnb responded to the province's move and accused them of using “indiscriminatory methodologies” when editing the list, reported Majorca Daily Bulletin. The company said: “They are at odds with Spanish and European regulations.”
