European Commission proposes stricter short-term rental regulations

The European Commission has proposed a new legislative framework aimed at addressing housing shortages by regulating short-term rentals, such as those offered via Airbnb. Part of the Affordable Housing Act initiative, the draft law seeks to establish uniform rules across the EU to help member states, regional, and local authorities mitigate the impact of tourist rentals on residential markets.

Under the proposal, authorities could implement restrictions or caps on short-term rentals in areas where they can demonstrate that such uses exacerbate housing scarcity or price increases. To determine if restrictions are proportionate, officials would consider factors including property prices, population income, supply and demand, and local population development. The goal is to provide tools for managing housing pressure in metropolitan areas, islands, and major tourist destinations without imposing a blanket ban across the continent.

The proposal must still be debated and approved by the European Parliament and EU member states. The CCIA, a lobby group representing Airbnb, has warned against disproportionate restrictions, noting that measures should be carefully examined, particularly in regions heavily dependent on tourism.