The problem is becoming more widespread than in big tourist areas.

https://english.elpais.com/economy-a...ere-to-go.html

When I still lived in the UK several workmates rented houses in the town. Even 12 years ago in the East Midlands area of the UK rents were getting unaffordable being upto â…” of monthly income!!

Steve

They are going to introduce new laws around Spain to try and deal with this. The anti- tourist movement is growing quite strong in certain parts and local governments are very aware that these things push people to vote for extreme right unless something is done. I have seen key safes sprayed over and UK cars have also been sprayed. I certainly would not advise buying a place as a short term rental and the first thing to happen will be limiting tourist licences and then most likely prohibiting non resident and allowing only permanent residents licenses.
That said Torrevieja is building 24,000 properties in the area between the lakes and la Mata. It is a new urbanisations which is solely for high end properties. I do work for one of the construction companies and they say they sell like hot cakes to Russian, Ukrainian and Chinese many of who do not even intend to use them- simply because Spain is seen as a safe place to put your money- so things like this don't help!!!

Hi
I am a U.K. landlord, so obviously property presents an interesting topic. I read these articles and I hear the reality on the ground in the Fuengirola area when I’m in town, I also study property wherever I go.

it may be no reassurance to anyone but the entire western world seems to be affected with the same affordability issues, in my area (uk) rents have taken off stratospherically, as a result of government intervention and interest rates. Many landlords have taken the kings shilling and sold up, leaving people like myself to apparently coin it with higher rents but with prospects of heavier legislation from an incoming labour administration. We are also seeing in east Lancashire a movement out from Manchester as the city regenerates and the tenants move to cheaper areas outside of the city.

i recently spent 3 months in Canada (Vancouver) and I found all the same pressures that are seen in the U.K. and the Costa’s, apparent in their market. Unaffordability, first time buyers not being able to get in the ladder, renters being forced out to less desirable areas. I thought in canadas case why don’t they just build more city’s, the place is big enough! The Canadians have banned overseas purchasers to try and cap the market. We rented an apartment in central Vancouver and the rents were staggering to say the least.

i know the costas are a different world but they are a desirable place to live, and i always found the rents my friends were paying on say a 2 bed apartment in Los Pacos quite reasonable. I can get a far better return on a U.K. property of the same value with more capital growth potential.

also I found that renters in Spain don’t pay the IBI (the landlord does) which to me is like council tax, and the costs of running a 2 bed apartment (as I have now) is pence. So renters seem to be having a reasonable time in relation to global western property markets.

im No economist but maybe the western central banks printing money has worked its way down to the lowest common denominator ie fixed assets. Overall what I’m trying to say is the property market is broken throughout the west, and the costas are feeling the pinch but believe me it’s nothing compared to other places. I fear for young people, although they are likely to inherit a lot from the boomers as long as it’s not eaten up in care fees (another western cloud on the horizon)

Best regards
Al

Yes lots of ideas are being proposed to limit holiday lets which if they eventually work will either mean a big landlord sell-off (and a price crash?) or a switch to long-term rent availability which although not as profitable is still (with all the tax allowances) a good income (with tenants who pay)

I rent out a flat in Torrevieja to a tenant I have had for years without a problem - the rent is below market level but he pays and takes good care of it.

I was there the other day looking at the port development project - I didn't know a new urb was being built...sounds like more desecration to me.

Renters do not pay the IBI or the community charges which are both tax-deductible allowances for the landlord.

I didn't intentionally buy it to rent out but that is how it has turned out. Yes, this problem seems to be everywhere including Oz.

I left home (UK) in 1976 and took out a 7,000 mortgage on a 7,250 pds flat - I was very stretched to pay the mortgage and was doing 2 jobs but inadvertently fell into a property boom - we were a lucky generation but we have had our ups and downs including a 15% mortgage interest rate in the past!

Yes as you say the boomers may land on their feet in the end with the bank of 'mum and dad'

Wouldn't that constitute an infringement of EU regulations?

What regulation would that be? The one that says all non- residents must have the same rights as residents except when they don't want to be treated as a resident in which case they are a non resident with a cake they can eat!!!
( That is a joke )
No but seriously - these are one of the things that are being mooted as a way of limiting the licences. In Valencia 90 % of short term rentals are meant to be not complying with law - so something will be done. Guardamar has already suspended all licences much to the surprise of folk who thought they were going to rent their apartments on Airbnb

When Airbnb started it was to rent a room in your occupied home... Their greed is also the problem

Yes, I agree Airbnb is out of control and has significantly helped to distort the market to the detriment of those wishing to rent long-term residential.

Yes, I can see how the suspension of issuing of new licences would be fine, or putting a validity period on existing licences and reviewing on expiry.

It's the discrimination between residents and non-residents I'm unsure about. A couple of completely unrelated items which came unstuck in Portugal :

Capital Gains Tax on property sales being calculated differently for non-residents, even after there was a change to allow them to opt for identical treatment as residents if they wished.

Road tolls introduced on some roads in 2010 /11 with a modest concession for users resident in or near the councils the roads ran through. The tolls were fine but the resident concession had to go.

Free movement of capital and services being 2 of the 4 pillars of the EU, I thought there might be some objection to putting barriers in the way of non-residents doing any sort of business of this nature.

I don't think there's any law against town/city councils saying you need x years of residency within the municipality as one of the requirements to buy/rent their VPO.

Lack of government intervention surely?

In Spain, residents of the islands receive cheaper airfare to and from the mainland than non residents. Happens also in South America too.
For the toll roads; an electronic badge would put that to rest. Everyone has the option to purchase them and earn discounts or not purchase and pay full price. Your average Joe on holiday or second home owners are not going to get them.

They were the exclusively e-toll roads, for which one of the payment options was a tag linked to vehicle and a bank account for payment. Average Joe 2nd home owners did acquire them. And it was put to the test in the ECJ.

I don't remember the full details of the judgement but if I remember correctly, the justification was discrimination on grounds of nationality, and that I found that somewhat surprising for various reasons (as with several other judgements I've ploughed my way through). Arcane legal points are not my forte or preferred reading material, though.

Anyhow, it's a little off topic and I only mentioned it in passing as an illustration, so I won't continue discussion of it in this thread.

Hi
In the uk the uk conservative government have rightly or wrongly pursed a policy of stopping property becoming a form of investment, instead of being a home. The mortgage tax relief was the beginning, with tightening of regulations following, the final nail has been the removal of capital gains allowances and alteration of how cgt is calculated.

The net result has been a mass sell out by private landlords over the last 18 months.

the government seem to be trying to stop private individuals looking at property as the natural pension pot, and a lot of amateur landlords have taken the stage exit.

This is a U.K. government thing, and it is radically changing the private rental market. I predict that in the future private rental homes will be build to rent as pension funds will build entire estates of new build rental properties, and small time one off landlords will slowly disappear.

that is the U.K. response to the problem and it is causing short term rent hikes and stress for tenants. In the long term it will probably make private rentals a thing for big business.

in certain areas (tourist destinations) private landlords have switched on mass to air b and b and private holiday let’s, but that part of the industry is next in line for a wing clipping.

speaking from the U.K., government legislation has radically altered the market (coupled with interest rates). So in short yes government over intervention is the issue here.

regards
Al