Warning to anyone using Airbnb in Spain: 'Prices could rise up to 20% in hotspots'

EXPERTS have issued a warning to all Brits who use Airbnb in Spain as new laws are implemented this week.

Thousands of properties could be pulled from short-term rental market as new laws come in across Spain from July 1st - with experts fearing it could push up prices by up to 20% in hotspots and limit options for holidaymakers.

A new register will require all properties used for tourism and short-term holiday rentals to have a mandatory registration code to operate legally. 

A total of 199,686 applications have been received to date, the vast majority for tourist rentals, according to figures released by Spain’s Ministry of Housing.

Of these, 90,046 registrations have already been approved, while 17,596 were rejected. While just over 92,000 registrations are still under review.

Sarah Kenny, Director at Build a Break, warned it will “push prices up” for Brits holidaying in Spain and “limit options” for families.

She added: "At Build a Break, we’re a travel platform that specialises in helping families plan affordable holidays – and as a family of six ourselves, we know firsthand how important the right accommodation is when travelling. 

"We regularly rely on Airbnb and similar short-term rental platforms, especially when visiting destinations like Spain. These types of stays often provide the most practical and affordable setups for larger families – with multiple bedrooms, communal living spaces, and kitchen facilities that allow us to self-cater. 

“Hotels rarely offer this combination without significant cost or booking multiple rooms. If Spain’s new regulations significantly reduce the number of properties to book, we’re concerned it could push prices up and limit the options for families like ours. It's not just about price – it's about the functionality and space that make travelling as a larger family possible and enjoyable.”

Rob Peters, Principal at Simple Fast Mortgage, said holidaying Brits could be forced into more expensive hotels.

He added: "The golden age of easy Airbnb cash in Spain is over. These rules could transform Spain’s property market. 

“Expect short-term rental prices to rise as supply is squeezed, pushing tourists back into hotels. Meanwhile, long-term rental stock could surge as owners pivot, softening prices for locals. For Brits, it’s adapt or exit – get registered, stay compliant and you’ll reap the rewards.”

Emma Jones, Managing Director at Whenthebanksaysno.co.uk, said it could also affect Brits who are letting out properties abroad with Airbnb.

She continued: "Many British holiday let investors turned to Spain when the UK government increased the costs associated with running short-term rentals here. For many, it was a more affordable alternative and a chance to enjoy some proper sunshine. 

“The loss of Airbnb in Spain, or heavy restrictions on the platform, will have a significant impact on British owners who rely on it to generate income.”

Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, said Brits letting out properties will look to Italy, Greece or Portugal instead of Spain.

He continued: "If you're a Brit with a property in Spain that you let out through Airbnb, these changes will have you pulling your hair out. The Spanish authorities are doing this to combat locals being priced out of the housing market, due to the explosion in the short-term rental market in recent years. 

"This will add another layer of complexity to renting out your property and will more than likely be the final straw for many, as they choose to sell rather than rent. 

“The result is that Brits looking to purchase a holiday home abroad to rent out will now turn their attention to other countries, such as Italy, Greece or Portugal, where regulations aren't as strict.”

Tony Redondo, Founder at Cosmos Currency Exchange, said prices could be raised by up to 20% in hotspots due to the law.

He added: "Spain’s new Airbnb law will delist thousands of short-term rentals. British buy to let owners face income loss when the unlicensed properties are removed. Those who try and register will face higher compliance costs or have to sell. 

“Pivoting to mid-term rentals for digital nomads is an option. Reduced short-term rental supply could raise prices by up to 20% in hotspots, pushing tourists to hotels, especially in Barcelona. Other countries with more relaxed short-term rental rules, like Portugal and Italy, will attract investors, boosting tourism and property tax revenue.”

While Kundan Bhaduri, Entrepreneur at The Kushman Group, added: “For the legions of Brits who invested their savings in a Spanish holiday home, this is now a nightmarish layer of state-controlled uncertainty. The figures speak for themselves: nearly half of the rental applications still stuck in bureaucratic purgatory, thousands of Brits face being locked out of the lucrative short-term market, their properties suddenly unable to earn their keep. 

"For those denied licences, expect a flood into the long-term rental market, triggering local corrections. Meanwhile, legal short-term stock shrinks, pushing up prices and funnelling tourists back to expensive hotels – a win for industry lobbyists masquerading as regulation. 

"Spain claims to be curbing speculation, yet by limiting supply, it has fueled price hikes. This wasn't about housing policy but rather revenue control, with British owners caught in the crossfire. And much like Britain’s own heavy-handed rental reforms, it’s the same formula: over-regulate, underdeliver and call it progress.”