The European Commission has put forward new proposals designed to limit short-term home rentals, including platforms like Airbnb, in an effort to ease housing shortages in popular tourist destinations. The proposed regulations would give local governments more authority to restrict holiday rentals where housing affordability and availability have been negatively impacted.
According to the Commission, the surge in short-term rentals has contributed to rising housing prices and fewer affordable options for residents, triggering protests in cities such as Paris, Berlin, and Barcelona. The measures form part of a broader “affordable housing” package aimed at addressing what European Commission Vice-President Teresa Ribera called a “terrible crisis.”
Measures to Address Housing Crisis in Tourist Hotspots
Under the new proposal, local and city authorities would be empowered to impose restrictions on short-term rentals and limit property purchases for holiday letting in areas determined to be “under housing stress.” To qualify as “under stress,” areas must meet specific criteria like an unfavorable ratio of housing prices to local incomes, sustained over at least three years.
The proposal explicitly excludes restrictions on landlords renting out their primary residence on a short-term basis. The legislation also encourages authorities to release land for new housing developments and modernize construction regulations to boost housing supply.
Legal Framework and Support for Local Authorities
The European Commission’s Affordable Housing Act aims to harmonize regulations across member states and provide clear legal backing for local governments to act without violating EU single market rules. This comes after previous local crackdowns on Airbnb-style rentals faced legal challenges from rental platforms and tourism companies.
Industry Response and Concerns
Lobbying group CCIA Europe, which represents Airbnb among others, criticized the proposal for lacking independent oversight and effective mechanisms to assess restrictions. Alexandre Roure, CCIA’s head of policy, warned that without impartial review and enforcement, the rules risk becoming ineffective and leaving unjustified restrictions in place, undermining legal certainty.
