The Department of Housing and Urban Agenda of the Basque Government has notified the City Council of the order definitively declaring the municipality of Elorrio a residential market tension zone. This declaration, with an initial three-year term renewable annually, activates various legal measures outlined in Law 12/2023, on the right to housing.
The main consequence is the establishment of a special regulation regime for habitual housing rentals, with limitations on rent updates and fixation, as well as more restrictive obligations for large holders. For already rented properties, the rent for a new contract will generally be limited by the last rent of the previous contract, after applying the corresponding update.
New conditions that pass on unforeseen fees or expenses to the tenant are prohibited. For new contracts on properties not rented in the last five years, the rent cannot exceed the maximum limit set by the reference price index system. A "large holder" is defined as any individual or legal entity owning five or more residential properties or over 1,500 m² of built area in the municipality.
The declaration also entails the automatic suspension of new tourist accommodation units during its validity. The process began on March 26, 2026, when the City Council requested this declaration, following a housing observatory report in April 2025 confirming the municipality met the necessary criteria.
The City Council designed an Action Plan with 26 specific measures focusing on promoting accessible rent, building rehabilitation, rental assistance, and inter-institutional coordination. The tension zone designation was a crucial legal requirement to implement structural measures like rent price limits and direct action against large holders.
“"This is good news. From the City Council, we cannot solve the housing problem, but we are doing what is within our power and we will do everything we can. The declaration as a tensioned municipality is a tool to intervene in the housing market."
