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[BUSINESS] · Italy, Spain, Portugal, Greece, Croatia · 10 sources

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European Commission to propose rules curbing short-term rentals

The European Commission is set to introduce the ‘Affordable Housing Act,’ a legal framework designed to help local and national authorities combat the housing crisis by regulating short-term tourist rentals. The proposal, expected to be unveiled around September 9, aims to provide standardized criteria for identifying areas under ‘housing stress’ to prevent legal challenges and ensure compliance with EU single market rules.

Under the proposed rules, authorities in high-stress regions could restrict short-term holiday lets and even limit the purchase of residential properties intended for non-primary use. Housing stress will be determined by specific indicators, most notably a price-to-income ratio of 8 or higher, alongside trends in population growth and supply-demand imbalances.

The legislation specifically targets professional multi-property operators rather than individual hosts renting out their primary residences, which will remain protected. This move comes as property prices across the EU have risen by approximately 60 percent and rents by 20 percent over the last decade, significantly impacting the affordability of housing for residents in major urban centers.

Entities

Airbnb · Barcelona · Dan Jorgensen · European Commission · European Union · TU Wien · Teresa Ribera · Vienna University of Technology

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