New real estate laws in Costa Blanca, Spain, are discouraging property owners from renting to long-term tenants, local real estate agents claim.

The new housing law in Spain has been labeled as having a "catastrophic" impact on the rental property market by the Alicante Association of Estate Agencies (API). The group claims the legislation has led to "thousands of empty apartments" and some have been put up for sale or converted into tourist accommodation.

API warned of possible negative consequencesAPI said the result is a sharp decline in the supply of rental housing, while rental values have risen "sharply", with the last year seeing a 16% rise.

API President Marife Esteso said, "The law has achieved the opposite effect that was intended because instead of incentivizing renting, it has discouraged it." "The legal safeguard for the landlord was removed and this meant that people who had an apartment to rent chose to sell it or convert it into tourist accommodation," he added.Esteso said API warned of possible negative consequences when the Housing Act went into effect last May. "We said it would lead to negative consequences, such as rent restrictions in certain neighborhoods and increased evictions involving low-income families."

The professional association calls on the authorities

The Alicante Professional Association personalities are calling on the authorities to "take measures that actually increase the supply of rental housing".For more details, follow the links below.