European Commission proposes Affordable Housing Act

The European Commission has introduced a legislative proposal for the Affordable Housing Act, a new initiative aimed at improving housing accessibility and supply across Europe. The proposal includes a recommendation regarding housing availability in regions experiencing intense market pressure.

The framework establishes a common European method for identifying areas under housing pressure. While national, regional, and local authorities will decide on specific measures, the proposal allows for restrictions on using properties for purposes other than primary residences, including short-term rentals. For short-term rentals, any restrictions must be evidence-based and preceded by a demonstration of significant negative impact on housing availability over at least three years.

Additionally, the recommendation encourages Member States to increase supply through faster authorization procedures, building redevelopment, and the reuse of unused property. The proposal will now undergo review by the European Parliament and the Council.