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[BUSINESS] · EU, Italy, Spain, France, Slovakia · 33 sources

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

The European Commission is set to present the Affordable Housing Act, a new regulation designed to provide local and regional authorities with legal tools to combat the housing crisis. The proposed framework aims to address rising property costs and limited availability by allowing municipalities to restrict short-term holiday rentals and limit the purchase of properties not intended for primary residences in designated “housing stress” areas.

Under the proposal, an area is classified as being under housing stress if the ratio of average property prices to average resident income is 8 or higher, provided this trend has persisted for at least 10 years without improvement. The regulation would be directly applicable across all EU Member States without requiring individual national laws.

The announcement has met with significant opposition from industry stakeholders. Booking.com has argued against EU-level intervention, suggesting that updated guidelines would be more appropriate to preserve the single market. In Italy, property owners and tourism associations have expressed concerns that the criteria could unfairly penalize tourist destinations and infringe upon property rights. While the Commission views the measure as a way to prioritize housing as a right over profit, critics warn of potential legal disputes and economic impacts on the tourism sector.

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Affordable Housing Act · Airbnb · Booking.com · Dan Jørgensen · European Commission · European Parliament · European Union · Teresa Ribera

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