The Cyprus Real Estate Agents Registration Council this week expressed its satisfaction with the recent initiatives aimed at regulating the issue of daily property rentals.

In an official statement, the council said it participated in a session of the House commerce committee where a bill was discussed to strengthen the legislative framework for self-catering accommodation and introduce penalties.

During the session, the council presented its positions on the matter and reiterated its strong concern about the effects of short-term rentals, highlighting a range of problems they generate.

Among these problems, the council pointed to the negative impact on rental prices, stressing that the rise in daily rental properties reduces the availability of housing for long-term rentals, which contributes to rising prices.

It also pointed out that planning zones are being bypassed, as daily rentals, which largely serve tourist purposes, have expanded beyond designated tourist areas.

At the same time, the council warned that Cyprus’ tourism product is being tarnished, as the lack of an adequate and effective control framework leaves room for accommodation that fails to meet quality and safety standards.

It further observed a gap between the number of officially registered accommodations and those offered through online platforms, leading to the clear conclusion that there are tax losses for the state and instances of tax evasion.

“We are perhaps the first to have highlighted the problems created by the phenomenon of daily property rentals, and we welcome the fact that several organisations and members of parliament are joining us to put in place the necessary safeguards for better regulation of daily rentals in our country,” said council president Marinos Kineyirou.

“It is important that the necessary legislative measures move forward to ensure the protection of consumers, the property market, the quality of our tourism product and the good image of our country,” he concluded.