Tenerife and Lanzarote consider introducing 'limit' which will affect UK tourists

The Canary Islands is plotting new measures to clampdown on home purchases to non-residents. The European Union holiday hotspot will be allocated funding in November as the mounting issue of home sales in the area continues in the holiday hotspot.

UK tourists purchasing property in the Canary Islands have caused the property market in the region, including house prices to become unsustainable. A spokesperson for the Canary Islands, including Tenerife and Lanzarote, Alfonso Cabello, has urged the government to make some "brave decisions" to address this mounting situation.

This initiative is part of a broader effort to address the housing crisis and demographic challenges faced by the islands, particularly in light of increasing property demand from foreign buyers and the impact of holiday rentals in residential complexes and areas on local housing availability.

READ MORE Millions of drivers will wake up to £145 bill next week at 'worst possible time'

Curbelo, president of the parliamentary commission studying the demographic balance, emphasised that restrictions on non-resident homebuyers are necessary. However, he stressed the need for a careful approach that aligns with European Union regulations.

According to a mortgage study led by Idealista, demand for mortgages from non-residents in the Canary Islands accounts for 7.7 percent of the national total. This makes the Canary Islands the fifth-highest region in Spain for mortgage applications from foreigners.

Curbelo added that despite the need to tackle this issue, a careful approach would also be required in order to align with EU regulations. One solution for the housing crisis in the Canary Islands could involve having stricter rules for non-residents when attempting to purchase a home so as to ensure the island can leverage its full potential but not allowing house prices to be out of reach for local residents.

Cabello further highlighted that in islands like Lanzarote and Fuerteventura, the population growth driven by non-residents has now outpaced that of native Canarians, deeming this an unsustainable trajectory.