The European Commission has introduced a proposal for stricter regulations on short-term rental platforms, aiming to alleviate affordable housing shortages in popular tourist destinations across the bloc. The initiative was unveiled on Wednesday as part of a broader “affordable housing” package designed to give local governments more power to intervene when markets fail residents.
Teresa Ribera, the European Commission vice-president, characterized the situation as a “terrible crisis,” stating that public authorities have a duty to step in when housing becomes unaffordable. The proposal seeks to standardize regulations throughout the EU, addressing previous legal challenges faced by cities such as Paris, Berlin, and Barcelona after they attempted to crack down on companies similar to Airbnb.
Under the proposed Affordable Housing Act, local and city authorities would be empowered to limit short-term holiday lets and restrict property purchases intended for that purpose in zones designated as “under housing stress.” However, before implementing these restrictions, municipalities must demonstrate that holiday rentals have negatively impacted housing affordability or availability for at least three consecutive years. Areas would only qualify as stressed if specific criteria, such as the ratio between local housing prices and incomes, are met.
The legislation includes protections for individuals renting out their primary residences for short periods, meaning it would not impact private landlords. Additionally, the Commission recommended that member states free up land for development and modernize construction planning to further address the housing deficit.
The proposal still requires approval from EU legislators and member states before becoming law. It aims to provide legal clarity, ensuring that local actions against housing companies do not violate EU single market rules.
Industry representatives have pushed back against the plan. CCIA Europe, a lobbying group representing Airbnb and other platforms, argued that the measures lack sufficient safeguards. Alexandre Roure, the group’s head of policy, stated that the EU is not solving the housing crisis by creating a framework for restrictions without independent oversight.
“Without independent scrutiny or effective redress, this proposal will remain a paper tiger, leaving disproportionate restrictions in place and undermining the legal certainty the Affordable Housing Act is meant to provide,” Roure said in a statement. The push for regulation comes amid growing public discontent, with thousands of protesters in Spanish cities like Malaga recently demonstrating against the impact of mass tourism and short-term rentals on local neighborhoods.
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