Ministry ratchets up pressure on holiday-let firms in quest to ease up housing sector in Spain

Spain's national consumer affairs ministry has opened an inquiry into companies that promote a large number of tourist rental properties. It follows a recent study of the advertising of properties online. The government believes these bigger firms "could be engaging in misleading practices and other potential infringements" of the law.

If the ministry decides there are irregular practices, a file would be opened and the corresponding fine would be applied depending on whether they are minor or serious infringements, with penalties of up to 100,000 euros or between four and six times profit on the properties.

In October, the consumer ministry also began investigating some real estate agencies that had allegedly carried out abusive practices against tenants in rentals management. These include practices such as forcing tenants to pay a commission for rental management or to sign temporary contracts without justifying the temporary nature of the contract, or to accept irregular clauses.

"These initiatives are part of the objective set by Pablo Bustinduy [the consumer minister] to tackle the housing crisis in Spain, an issue that, as he has stated publicly on several occasions, is one of the main problems facing our country," the ministry said.

"There are thousands of families living on the edge in our country because of housing, while a few get rich with business models that drive people out of their homes," said the minister a few months ago.