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European Commission proposes Affordable Housing Act to regulate short-term rentals

The European Commission has introduced the Affordable Housing Act, a legislative proposal designed to provide a common framework for addressing the housing crisis across the European Union. The initiative aims to grant local and regional authorities greater legal certainty when implementing restrictions on short-term holiday rentals, such as those on platforms like Airbnb, in areas experiencing significant housing pressure.

Under the proposal, an area can be identified as being under housing stress if the price-to-income ratio is 8 or higher and has trended upward over the last decade, or if the ratio reaches 10. To prevent arbitrary measures, the Commission stipulates that any restrictions on short-term rentals must be evidence-based, necessary, proportionate, and cannot be applied retroactively. Furthermore, authorities may only impose such limits if they can demonstrate a significant negative impact on housing availability or affordability for at least three consecutive years.

Commission President Ursula von der Leyen emphasized that the move is a step toward tackling housing affordability, noting that many residents, particularly students and essential workers, are being priced out of urban centers. The proposal also encourages authorities to increase land availability for housing and modernize urban planning processes to bolster long-term supply.

Entities

Airbnb · Dan Jørgensen · Deutscher Mieterbund · European Commission · European Union · German Tenants' Association · Haus & Grund · Teresa Ribera · Ursula von der Leyen

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