Puerto Naos considers capping new holiday-let licences to curb rising prices

A tourist resort left with no housing for residents

Puerto Naos, the main tourist centre on the western side of La Palma, in the municipality of Los Llanos de Aridane, is undergoing a rapid transformation of its housing market. Property portals active in the area report that many of the flats once let to long-term residents are now offered as short-stay holiday accommodation, far more profitable for owners thanks to demand from Spanish and central European visitors.

The knock-on effect in Tazacorte

The phenomenon is not confined to Puerto Naos: industry sources say the shortage of long-term rentals has spread to the town of Tazacorte, where hospitality staff and workers from the nearby farming sector are finding it ever harder to secure housing at a reasonable price. Several local agencies estimate that long-term rents in the area have risen by more than 20% in recent years, well above the island average.

The regional holiday-lets decree under scrutiny

The new Canary Islands rules on holiday lets, which require town councils to designate zones where the activity is permitted or barred, have left Los Llanos de Aridane facing a decision on whether to restrict new licences in Puerto Naos. Council sources consulted by the sector acknowledge that the debate is divisive: tourism sustains much of local employment, yet pressure is growing from residents to guarantee affordable housing for those who work there all year round.

Owners waiting for clear rules

Local owners' associations are calling for regulatory certainty before any new restrictions are approved, while residents' groups want a firm cap on the number of tourist licences per settlement. At the same time, property portals are already registering a slight uptick in flats listed for sale in Puerto Naos, as some owners look to sell up ahead of any tighter regulation.