Housing law loophole could fuel Spain's short-term rental boom -lobby

FILE PHOTO: People enjoy the sunny weather on Magaluf beach, on the Balearic island of Mallorca, Spain April 6, 2023. REUTERS/Enrique Calvo/File Photo

MADRID (Reuters) - A new law to curb rents in high-demand areas won't stop owners renting property to tourists, a loophole that could fuel an uncontrolled boom in short-term accommodation, Spain's main tourism lobby said on Thursday.

The bill, introduced by the government on Tuesday, caps annual rent hikes at 3% in certain areas to help those who cannot afford soaring prices in tourist hotspots such as the Balearic and Canary archipelagos or Mediterranean cities like Malaga.