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La Gomera

The Cabildo of La Gomera studies declaring stressed-market areas to curb rent prices

Euroinmobiliaria® · · 1 min read

The Cabildo of La Gomera studies declaring stressed-market areas to curb rent prices
Photo: Llez / Wikimedia Commons (CC BY-SA 3.0)

An institutional response to an already-recognised problem

The Cabildo is studying mechanisms to curb rising rents in Valle Gran Rey and Alajeró.

A stressed-market-area declaration on the table

Officials are looking at requesting a declaration of stressed residential market area.

Direct support while the legal framework is defined

Direct rental support schemes for young people and families are being strengthened.

Coordination with the island's town councils

The island's seven town councils have been called together to design a joint housing strategy.

Valle Gran Rey and Alajeró, the areas under the most strain

Residential rents in Valle Gran Rey and Alajeró, the island's two most tourism-heavy municipalities, have in recent years risen at rates clearly above the average for the rest of La Gomera, according to data handled by the Cabildo itself. The combination of second homes, holiday rentals and a very limited supply of stable housing explains much of this strain.

What the stressed-market-area declaration allows

Adopting the stressed residential market area designation, provided for under national housing law, would allow the Cabildo and the affected town councils to apply caps on rent-review increases and prioritise specific support for those municipalities. The island institution is still studying the exact territorial scope such a declaration would have.

A debate already affecting other islands in the Canary archipelago

La Gomera is not the only island considering this mechanism: Tenerife and other islands in the Canary archipelago under strong tourist pressure are looking at similar approaches to curb rising rents. The Gomeran Cabildo is following these experiences closely before taking the step, aware that the measure requires backing from both national and regional authorities.

The next steps before a final decision

After convening the island's seven town councils, the Cabildo expects to complete a joint assessment in the coming months to inform a decision on whether to formally request the stressed-market-area declaration. In the meantime, the direct rental support schemes for young people and families already announced will continue to be strengthened.