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Australian Airbnb owners on alert as Spain removes 65,000 illegal listings

A landmark court ruling has forced Airbnb to remove tens of thousands of illegal tourist accommodation listings in Spain, leaving Australian short-term rental owners nervous about a potential similar crackdown.

The Spanish ministry of social rights, consumption, and the 2030 agenda has ordered Airbnb to block more than 65,000 illegal tourist accommodation listings on its platform. 

The company initially refused to comply, taking the matter to court, but has now lost its case in the Madrid High Court.

Around 5,800 tourist accommodation listings were among the first ordered to be removed immediately, with thousands more to follow according to realestate.com.au.

The crackdown affects several regions including Andalusia, the Community of Madrid, Catalonia, the Valencian Community, the Balearic Islands, and the Basque Country.

Australian Airbnb hosts, who contribute to an estimated 300,000 properties on the platform nationwide, are watching the Spanish developments with growing concern as similar housing pressures mount locally.

Consumer affairs minister Pablo Bustinduy said the government’s goal is to “end the widespread lack of control and illegality of tourist accommodation, as well as to facilitate access to housing and protect consumer rights.”

The Spanish government requires that short-term rental listings include the license or registration number of the firm offering the property, which was the most common violation found in the advertisements analysed.

“These listings violate the regulations of the various autonomous communities where the Consumer Affairs Department has detected them,” Mr Bustinduy said. 

“In all cases, the listings are for entire tourist accommodations; no listings for individual rooms appear.”

The ruling comes amid growing anti-tourism sentiment and protests across Spain, where locals have been demonstrating against tourists taking up housing that could otherwise be available for residents. 

Australia has seen similar tensions emerging in popular tourist destinations like Byron Bay, Noosa, and parts of Tasmania.

This legal battle is being closely watched by Australian authorities and local councils, many of which have already introduced or are considering restrictions on short-term rentals to address housing shortages.

Airbnb has consistently denied any role in worsening housing affordability in Australia, claiming a study it commissioned with Urbis found short-term rental accommodation “has no consistent impact on affordability” in the country.

“Therefore, other factors must be driving affordability outcomes in Australia,” an Airbnb statement said.

The Spanish government is also targeting real estate agencies and corporations involved in the short-term rental market. 

Officials are sanctioning large tourist apartment managers “for failing to correctly indicate the legal nature of the landlord” and have opened proceedings against “a large real estate agency for abusive practices against tenants.”

Australian property experts suggest similar regulatory measures could be implemented domestically, particularly as housing affordability continues to be a critical issue across major cities and regional hotspots.

The Spanish government statement also noted that some listings had license numbers that did not correspond to those issued by Spanish authorities, which it deemed “misleading and deceptive against consumers.”

“The department is collaborating across various administrations to share information and offer technical assistance to boost the crackdown and put an end to the thousands of illegal advertisements detected,” the statement said.

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.