Wednesday, October 14

The Hidden Connection Between Holiday Rentals and Elections in Spain

The Plight of Paquita López

At 83 years of age, Paquita López finds herself facing a distressing situation: she has been diagnosed with Parkinson’s disease and is now under threat of eviction from her home of nearly three decades. This distressing news came in July, even though she has consistently paid her rent of €1,150 (approximately $1,287) for her flat on Santa Ana Street 6, located in the vibrant La Latina neighbourhood of Madrid, Spain. The property owners, a family of heirs managing several buildings in central Madrid through their company Tolesanta SL, have refused to engage in any negotiations and are intent on forcing her out. Paquita fears that her long-term residence, which she has occupied since 1998, may soon be transformed into a tourist rental listed on platforms like Airbnb, similar to other apartments in her block.

“For 28 years, I have never missed a payment. Now they want to evict me to profit from tourists,” she expressed in a recent video shared by La Chispera, a local residents’ association representing communities in Lavapiés and La Latina.

Paquita’s home lies less than ten kilometres from the Palacio de la Moncloa, the seat of the Spanish Government and the official residence of the Prime Minister. On October 5th, Prime Minister Pedro Sánchez announced snap elections to be held on November 29th, highlighting the urgent need to address the ongoing housing crisis.

Housing Crisis and Political Implications

There exists a direct link between Paquita’s situation and the upcoming elections: the housing crisis has emerged as the primary concern for 41% of Spaniards, according to the Centre for Sociological Research (CIS). Organisations such as the Tenants’ Union attribute part of the blame to platforms like Airbnb. “It’s a significant component of a model that transforms housing into an increasingly lucrative business for a select few while rendering it increasingly inaccessible for those in search of a home,” stated Pablo Pérez, a spokesperson for the union.

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Laura Rodríguez, a 38-year-old neighbour of Paquita, shares a similar story. A consultant by profession, Laura faced eviction from her previous residence a few years ago. Along with her flatmates, she received a legal notice that left them with no choice but to vacate the property without an option to renew their lease. They managed to relocate to the flat below, only to discover that their former residence had been converted into a tourist accommodation on Airbnb. Now living beneath a tourist rental, Laura faces constant disturbances and escalating rent. “In just six years, our rent has risen from €900 (over $1,000) to €1,500 (almost $1,700),” she lamented.

Recent Developments in the Housing Debate

The past few weeks have seen a surge of activity in Spain, drawing significant attention to the housing crisis. On September 23rd, another elderly woman, Maricarmen Abascal, was evicted from her home in the El Retiro district of Madrid. Shortly thereafter, a protest against speculation and the lack of access to decent housing culminated in a makeshift camp at Puerta del Sol, Madrid’s main square, where Laura Rodríguez can often be found.

In response to the growing discontent, Sánchez’s government (PSOE) introduced two emergency decrees aimed at curbing the sale of homes to investment funds and prohibiting the eviction of vulnerable individuals. However, these measures were rejected by the conservative majority in Congress, prompting the Prime Minister to call for elections. “Many in society are outraged to see their interests trampled in Parliament for the benefit of a select few,” he declared. “We are entering an electoral campaign that will be profoundly influenced by housing issues,” noted Alicia del Río, a spokesperson for the Tenants’ Union.

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Temporary Relief for Paquita

For the time being, a judge has halted Paquita’s eviction, ruling that she cannot be forced to vacate until an alternative accommodation is secured. However, the issue of tourist rentals remains prevalent. A recent investigation revealed numerous properties available on platforms like Airbnb and Booking, including listings for up to ten guests in Paquita’s building. Tolesanta, the investment fund seeking her eviction, is listed as one of the hosts, with no mention of permits or licensing.

Laura Rodríguez argues that many of these rentals are illegal. “They want to evict a person from her home to allow a property owner to commit offences,” she contended.

The Unchecked Rise of Tourist Rentals

In recent years, there has been a significant increase in tourist rentals, many of which operate without proper licensing. Current legislation stipulates that in Madrid’s historic centre, new tourist accommodations can only be established in entire blocks. This creates a situation where property owners may resort to intimidation tactics to acquire all the flats in a building, often flouting the law. Both Toledo 77 and Santa Ana 6, which are adjacent, feature properties designated for vacation use, yet none are registered with the local authorities.

On October 3rd, an investigation revealed the bustling activity of tourists checking in and out of these properties, with residents reporting frequent noise and disturbances, as well as calls to the police. Some residents claim that property owners have tried to coerce them into selling their homes. “Initially, they tried to persuade us amicably. Then they resorted to threats,” one resident reported. One family even took Airbnb to court, successfully compelling the platform to remove ten tourist listings, yet offers remain on the site.

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The National Institute of Statistics (INE) has recorded over 13,000 accommodations in Madrid and approximately 340,000 across Spain. The Madrid City Council maintains a website listing just over a thousand licensed properties, suggesting that the remainder are illegal, according to critics. “They neither inspect nor regulate them,” complained Lucía Lois, a councillor for Más Madrid, the main opposition party, which has been vocal against the ongoing “touristification” of the Spanish capital.

Despite attempts to reach Airbnb and Tolesanta SL for comments, no responses were received.

The Broader Housing Crisis

The eviction of Maricarmen Abascal ignited widespread protests, ultimately prompting Sánchez to call for early elections. Yet, the housing crisis continues to escalate, presenting various faces. Paquita lives in constant fear of receiving another eviction notice, while countless young people grapple with rental prices that consume a significant portion of their salaries. As Pablo Pérez articulated, tourist rentals contribute to the broader problem. “Without a platform that provides visibility, these properties become much harder to rent,” he summarised.

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