18/06/2026
Could government regulations designed to protect tenants actually make the housing shortage worse? 🤔
It is one of the most important and least discussed questions in Spain's rental market right now — and it deserves an honest answer.
The logic is straightforward. When rising costs, increasing compliance requirements and growing regulatory complexity make long-term rental financially unsustainable or overly risky for landlords — some exit the market.
Some switch to holiday lets where returns are higher and flexibility is greater.
Some decide to sell their properties entirely.
Others choose to leave properties empty rather than take on the perceived risks of a regulated tenancy.
Every property that leaves the long-term rental market means one fewer home available for tenants.
Supply decreases. Demand stays the same or grows. Rents in the remaining available properties increase. The very tenants that regulation was designed to protect end up with fewer options and higher costs.
This is not a theoretical concern. It is a pattern that has been observed in rental markets across Europe — including Berlin, Barcelona and Dublin — where aggressive rent regulation was followed by a measurable reduction in available rental supply.
This is not an argument against sensible regulation. Good landlords support fair rules and appropriate tenant protections. The challenge is finding the right balance.
A healthy rental market requires confidence on both sides. Tenants need security and quality homes. Landlords need confidence that their investment is financially sustainable and their property is protected.
The goal — for everyone — should be more quality rental properties available to more tenants. Not fewer.
At Marbella Lettings we are long term rental specialists in Marbella. Free guidance and support — no pressure, no obligation.
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