European cities facing housing shortages could get greater powers to regulate short-term holiday rentals under new rules proposed by the European Commission, as the bloc seeks a common approach to a problem that has prompted protests and a patchwork of local restrictions.The proposal aims to help authorities identify areas where housing affordability is under pressure and introduce targeted measures, including restrictions on short-term rentals. Cities including Paris, Barcelona and Venice have already imposed various curbs on holiday lets, but differing rules have led to legal challenges and calls for a more coordinated approach across the European Union.
Why the EU is acting
The rise in short-term holiday rentals has added to concerns over the availability of affordable homes in major tourism destinations, particularly for younger residents. The issue has triggered protests in several European cities, with residents arguing that homes are increasingly being converted into tourist accommodation.“A year ago, I promised to tackle Europe’s housing affordability,” Commission President Ursula von der Leyen said in a statement. “Today, we are taking one step in this direction. By providing more clarity and support to local authorities and communities, anchored in local realities,” as quoted by Reuters.Under the proposed framework, authorities could identify housing-stressed areas by looking at factors such as high house-price-to-income ratios or sustained increases in those ratios over the past decade. Any restrictions on short-term rentals would have to be evidence-based, necessary and limited to the areas facing housing pressure, rather than applied retrospectively.The Commission also wants governments to address the broader shortage of housing by making more land available for development and speeding up planning and construction processes.The proposal still needs approval from EU member states and the European Parliament before it can become law. It would establish the first common European framework for assessing housing measures while leaving individual authorities to decide what action is appropriate.Short-term rental platforms and industry groups have argued that the underlying problem is a lack of housing supply. Airbnb’s head of government affairs for the EU, George Mavros, said the focus should be on “construction, renovation, and the homes standing empty across Europe today”.The industry group CCIA Europe, however, criticised the proposal’s approach to oversight, arguing that without independent scrutiny or effective redress, restrictions could remain in place without sufficient checks.
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