The European Commission has proposed new rules designed to help authorities manage the impact of short-term holiday lets and second homes on housing availability and affordability in popular tourist destinations.
The proposed Affordable Housing Act aims to establish a clear legal framework for local governments to implement measures restricting short-term rentals, such as those offered on platforms like Airbnb, which have been linked to rising housing prices and a scarcity of affordable homes for residents.
"A year ago, I promised to tackle Europe's housing affordability. Today, we are taking one step in this direction," stated Commission President Ursula von der Leyen. "By providing more clarity and support to local authorities and communities, anchored in local realities."
The new proposal, which requires agreement from EU countries and the European Parliament to become law, seeks to provide mayors with legal certainty and tools to address housing problems. Executive Vice-President Teresa Ribera emphasized that the act provides a "European framework to give a legal umbrella to mayors from across the European Union that need certainty to tackle the housing problem."
"Today, with the Affordable Housing Act, we provide legal architecture, enabling tools, not prescribing one size-fits-all solutions for those authorities that want to act to protect their citizens," Ribera explained. "For the first time in Europe, we are setting technical criteria to define what constitutes an area under housing stress."
According to the Commission, authorities can identify areas experiencing a housing squeeze by examining high price-to-income levels or an upward trend in prices over the past decade. Any subsequent restrictions on short-term rentals must be evidence-based, necessary, limited to affected areas, and not retroactive.
The proposed measures also address restrictions on properties purchased or used for purposes other than as primary residences, such as short-term rentals or investment properties.
"Short-term rentals have a place in Europe's tourism economy, but their impact in some cities is devastating," Ribera noted, adding that in some popular tourist destinations, short-term rentals can account for up to 20 percent of homes and have a demonstrable impact on local housing prices and rents.
Airbnb, represented by George Mavros, head of government affairs for the European Union, acknowledged the act's principles but called for "real guardrails that turn them into certainty for the hosts, guests and small businesses who depend on this activity." Mavros stated, "Making housing more affordable is a goal we share, and we stand ready to work with Members of the European Parliament and the Council to get this Act right. That means focusing it where the shortage actually is: construction, renovation, and the homes standing empty across Europe today."
In parallel, the Commission also adopted a recommendation offering guidance on how to increase housing supply, with an emphasis on below-market-price housing. This guidance covers practical actions related to planning, renovation, repurposing existing buildings, new construction methods, and investment.