Spanish city loved by expats under threat as 'thousands of homes left empty' over new laws

The Spanish rental market has seen new legislation introduced, which is having a “disastrous” impact according to the local Alicante estate agents’ association.

“Thousands of flats [have] been left empty” in the city and many other properties have been sold or converted in tourist villas, claims Alicante’s Association of Real Estate Agents (API), according to Olive Press.

In Spring last year, the Spanish government passed reforms to rental rules, which saw the creation of “stressed zones” in areas that had seen sharp increases in tenancy rates. Areas such as this, saw limits placed on the amount of rent landlords could charge.

Once the “stressed zone” is designated, that statutes will remain in place for three years and can be renewed if market conditions change.

The group has claimed that the new legislation has meant that ‘thousands of flats are now empty’ while other have been put up for sale or converted into holiday homes.

In Alicante, estate agents claim that the rental stock has dwindled and as a result of the limited number of rental properties available, tenancy rates have risen “steeply”. Last year saw a 16 per cent hike, according to The Olive Press.

API president, Marife Esteso, said: “The law has achieved just the opposite effect to the one intended, as instead of promoting renting, it has discouraged it.”

He added: “The legal certainty of the landlord has been eliminated and that has meant that people who had an apartment to rent have preferred to sell it or convert it into tourist housing.

“We said it would bring negative consequences, such as the limitation of rent in certain areas and an increase in evictions involving vulnerable households”.

This news will make grim reading for Brits eyeing up a place in the sun to rent. Alicante is the most popular Spanish location with Brits looking to move abroad, with 76,000 already living there.

According to figures from Spain’s Ministry of Migrations, just under 410,000 British citizens live in Spain. Although Brexit has made it more complicated for Britons to move to the EU, many are still tempted to relocate.