The European Union is preparing to present plans that will grant cities greater authority to restrict short-term rentals, such as those on platforms like Airbnb. These measures aim to reduce housing costs in popular tourist destinations.
The European Commission will develop the conditions under which local authorities can limit short-term rentals. This will be part of a package of measures to ensure affordable housing, which the EU is leading to address a problem that EU President Ursula von der Leyen has termed a 'social crisis.'
Von der Leyen previously highlighted this issue as a priority for Brussels, noting that healthcare workers, teachers, and firefighters cannot afford to live where they work, and students are dropping out of school due to inability to pay rent.
Residents of many popular tourist destinations blame short-term accommodation for taking apartments away from local residents for long-term rental and contributing to rising prices. Worldwide, from New York to Barcelona and Tokyo, the number of cities that have introduced or considered restrictions on tourist apartments has been growing.
However, such restrictions are often challenged in court by rental providers and tour operators, leading to legal uncertainty. The Commission's Affordable Housing Act is intended to provide cities with a legal basis by clarifying when authorities can act without violating EU single market rules.
Under the draft, cities and other relevant bodies will be able to restrict daily rentals, as well as the purchase of property for short-term rental purposes in areas deemed to be under 'housing market stress.' The document sets out several parameters that an area must meet to be designated as under pressure, including the ratio of housing prices to population income.
The draft also specifies that 'population dynamics' and future housing supply and demand must be taken into account, and any measures taken must be necessary, proportionate, and non-discriminatory.
The new legislation will not affect homeowners who rent out their primary residence for short periods. The issue of housing affordability is becoming increasingly pressing in all 27 member states. According to Brussels, property prices have risen by 60% and rent by 20% over the last decade, leaving millions of people unable to find affordable housing.
The EU argues that the main cause is a shortage of housing stock, but short-term rentals create additional pressure in certain areas. Although short-term rentals account for only about 1.2% of the EU's housing stock, in popular areas of some tourist spots, their share can reach 20%, according to EU data.
The EU draft states that daily rentals 'can bring important economic and social benefits, especially to households struggling to cover expenses,' but they 'can also exacerbate pressure on housing demand in some limited local markets.'
Nevertheless, rental providers dispute this assertion. The technology lobbying group CCIA stated in a letter to the commission this month that 'for the vast majority of cities, the claim that short-term rentals cause housing market stress does not withstand scrutiny.' The group also noted that in some cities with restrictions, rents and hotel prices rose, citing Lisbon, which recently lifted some previously imposed restrictions.
An Airbnb representative stated that 'the housing crisis in Europe requires structural solutions, and the implementation of this Act must focus on increasing housing supply.'
