Key facts
- The European Commission's Affordable Housing Act will provide tools for local governments to regulate short-term rentals.
- New EU-wide rules will determine if an area is under housing stress.
- Authorities will have legal backing to use targeted measures to address home shortages.
- Short-term rentals are acknowledged as aggravating housing affordability issues in some European cities.
- The legislation aims to protect local authorities from litigation when implementing rental restrictions.
The European Commission is set to approve the Affordable Housing Act, introducing EU-wide rules to help combat rising housing costs by giving local authorities more power to regulate short-term rental platforms like Airbnb. The legislation aims to provide legal backing for targeted measures in areas identified as experiencing housing stress, a move intended to ease home shortages and improve affordability.
Energy and Housing Commissioner Dan Jørgensen acknowledged that while short-term rentals are not the sole cause of Europe's housing crisis, they significantly exacerbate the problem in popular cities. He noted that in some tourist hotspots, short-term rentals can constitute a substantial portion of the housing stock, removing homes from the residential market and impacting availability and affordability.
Several European cities have already attempted to regulate short-term rentals, with examples including Barcelona's plan to phase out tourist apartments by 2028 and licensing systems or rental caps in cities like Amsterdam, Florence, and Paris. However, these efforts have frequently led to protracted legal battles with homeowners and tourism operators, as well as challenges from platforms like Airbnb. The new legislation is designed to streamline these processes and reduce litigation risks for local governments.
Jørgensen defended the Commission's role, emphasizing that the goal is not to impose restrictions from Brussels but to empower national, regional, and local authorities to determine housing stress and implement appropriate interventions. He asserted that housing is a right, not merely a commodity, and that people's needs should take precedence over profit. The act is seen as a crucial step in addressing a pressing social crisis and maintaining public trust in democratic institutions.