La Orotava Delays Request for Housing Crisis Zone Designation
La Orotava, a municipality in northern Tenerife, has yet to submit a request to the Canary Islands government for a “tensioned area” designation, which would allow them to cap rental prices, particularly in the historic town centre. This proposal, made by the Assembly for La Orotava, was approved by the local council almost three years ago.
The municipality, home to approximately 42,500 residents and spanning 72% of the Teide National Park, has conducted a new study detailing property prices from 2020 to 2023. This report, presented to the Urban Planning Commission on July 1, shows that not only does the historic centre qualify for the designation, but so do most neighbourhoods, with some areas experiencing price increases of up to 129%. The required benchmark for this designation is just 19%.
Notably, the Canary Islands government has yet to approve any such requests from municipalities across the islands. The regional administration under Clavijo has ignored the national housing law, initially planning to challenge it in court but failing to meet the deadline. The government’s focus remains on increasing housing supply rather than regulating rental prices or addressing speculation.
During a recent council meeting, local officials admitted that the request has not yet been sent to the regional government, despite ongoing calls from the Assembly for La Orotava. Manuel Pacheco, the coalition’s spokesperson, criticised the local government’s lack of familiarity with the process, noting that they have yet to provide essential information requested throughout July.
He added, “They haven’t even decided whether to send the diagnosis to the community, despite the law clearly stating that a specific action plan must accompany requests for tensioned areas.”
In contrast, David Felipe Benítez, the local government’s spokesperson and financial councillor, explained that the study goes beyond a simple request for a tensioned area, covering various aspects of the housing market. He clarified that the local council does not define the designation; that responsibility lies with the regional government, which will ultimately inform them on the matter.
Pacheco also pointed out the municipality’s failure to increase property taxes in 18 years, benefiting large property holders, including construction firms and banks, while neglecting the average taxpayer. The town’s urban planning document indicates about 2,500 empty homes, suggesting that taxing larger property owners could generate significant revenue. This could then be used to enhance social and housing policies.
Benítez mentioned that, while a surcharge on property taxes for large holders was approved in 2018, its implementation has been stalled due to ambiguity around definitions in local laws. However, new legislation passed in 2023 clarifies these issues, and the council is currently analysing how to apply the changes in practice.
Overall, local officials are now working to prepare an economic study to assess the feasibility of these measures and ensure they align with the broader housing requirements of the municipality.
