Valencia to limit number of private holiday rentals like Airbnb under proposed new law

The seaside city is the latest front in Spain's battle against the booming private holiday rental market

Private holiday rentals with views like these will no longer be granted licenses under a new law to be voted on by Valencia's regional government. (Getty Images/iStockphoto)

The Spanish seaside city of Valencia is considering introducing a law to limit private holiday rentals.

The new legislation would ban all new rentals in the Ciutat Vella, the crowded historic centre of the city. Elsewhere in Valencia, only ground and first floor properties would be granted the necessary license under the new rules.

By effectively taking Valencia’s most appealing properties – those in central locations and boasting nice views – off the private holiday rental market, the regional government hopes to halt the private rental boom that local residents say is pricing them out of their own city.

“With this new legislation, councils can take back control of what properties may be used for, and in Valencia we are going to impose an important barrier to ensure the trend does not grow in future,” Sandra Gómez, the deputy mayor of Valencia, told The Local Spain.

Gómez estimates that approximately 70 per cent of Valencia’s 5,000 holiday rentals do not have the correct licenses.

The move by Valencia’s regional government is the latest attempt by Spanish authorities to curb the holiday rental market, following Palma de Mallorca’s complete ban on homeowners renting out their apartments to visitors (detached properties will not be affected, provided they are not in protected areas). Residents flouting the rules, which come into force in July, risk fines of up to €400,000.

In 2016 Barcelona fined property rental websites Airbnb and HomeAway €600,000 each for marketing homes without the necessary licenses.

These crack downs take place against a backdrop of increasing concern about the numbers of visitors descending on Spanish cities and their effects on the housing needs of local people. In July 2017 small anti-tourism protests took place in Barcelona, Mallorca, Valencia and San Sebastian​.

Airbnb said in a statement: “Home sharing on Airbnb is helping local families across Valencia afford their homes and rising living costs, while boosting the local economy. It is part of the solution to local housing concerns in the city, and is helping put tourism euros in the pockets of local families – not just wealthy hotel groups.

“We look forward to continuing our positive conversations with the City of Valencia on clear and fair rules that differentiate between professionals and regular families occasionally sharing their home.”

Around 340,000 visitors were hosted at Valencia properties listed with Airbnb in 2017, with hosts typically earning €3,700 per year, according to figures released by the company.

Valencia attracted over 100,000 British visitors in 2017, with numbers increasing year-on-year thanks to three new direct flights from UK airports, according to figures published by the Valencia tourist board in February. As of June, when a new direct flight launches from Belfast International, British travellers will be able to fly to Valencia from a total of nine UK airports.