European Commission proposes Affordable Housing Act to regulate rentals

The European Commission has proposed the Affordable Housing Act to improve housing accessibility and affordability across the EU. During a discussion at the European Parliament, Commissioner for Energy and Housing Dan Jørgensen stated that the Act aims to provide legal certainty for member states to regulate short-term rentals, secondary residences, and vacant properties in areas facing high housing pressure.

Data indicates that EU housing prices have risen by over 60 percent and average rents by approximately 20 percent over the last 13 years, with the most significant increases occurring in urban centers. Additionally, short-term rentals grew by 93 percent between 2018 and 2024. While Jørgensen noted that these factors are not the sole cause of the crisis, they contribute to housing challenges in many major European cities.

Under the proposed legislation, local authorities must demonstrate that short-term rentals or vacant homes contribute to local housing shortages before implementing restrictive measures. MEPs have cautioned that the law must not negatively impact small family landlords.