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EU Affordable Housing Act and national regulatory debates

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2026-10-21 20:10 UTC → 2026-10-24 15:36 UTC · added ~~removed~~

The European Commission has formally introduced the Affordable Housing Act, a legislative proposal designed to provide local authorities with a common framework to combat the housing crisis. The Act aims to grant legal certainty to municipalities when implementing restrictions on short-term holiday rentals and vacant properties in ‘housing stress areas’. ~~Opposition remains significant; industry groups argue~~ To implement such restrictions, authorities must demonstrate a significant negative impact on housing availability over at least three years. Commissioner Dan Jørgensen noted that while short-term rentals are not the ~~primary driver~~ sole cause of ~~rising prices, while~~ the crisis, they contribute to challenges in urban centers where prices and rents have risen sharply. Opposition remains significant. The Italian government has rejected the EU proposal, ~~citing concerns over private property rights and family savings. In Italy, regulatory landscapes remain fragmented. While the Puglia Regional Council approved~~ seeking a ~~law allowing municipalities in high-density tourist areas~~ national derogation to ~~set limits on short-term rentals~~ ensure states retain the freedom to ~~protect residential availability, national bodies~~ decide on rental limits. Minister for European Affairs Tommaso Foti signaled a hardline stance against what the government views as a top-down mandate that could ‘paralyze the domestic property market’. This position is supported by property owner associations and ~~professional groups like~~ the Italian Federation of Professional Real Estate Agents ~~(FIAIP) continue to advocate~~ (FIAIP), which advocates for structural redevelopment over rental penalties. Other European cities are implementing localized measures. Vienna has announced stricter regulations effective January 1, 2027, which include a mandatory municipal registry and a cap on short-term rentals at 20 percent of available housing stock In Spain, large-scale initiatives continue. The ‘España Crece’ fund aims to ~~ensure 80 percent remains for long-term use. Mayor Michael Ludwig noted these measures aim~~ mobilize up to ~~provide better oversight. Spain continues~~ 23 billion euros to ~~advance large-scale initiatives. Through the Casa 47 program, the state~~ construct 15,000 housing ~~company is activating land from Sareb to develop affordable homes in Ávila, Logroño,~~ units annually. Complementary fiscal measures, including tax incentives for landlords and ~~Palma de Mallorca. Additional~~ potential VAT surcharges on tourist apartments, are under consideration. Regional efforts include ~~modular~~ industrialized construction in ~~Valladolid~~ the Valencian Community and ~~a rehabilitation project~~ protected housing projects in ~~Galicia to convert ecclesiastical properties into social housing.~~ Ibiza. Meanwhile, ~~the town of Marinaleda maintains a long-standing model of public housing with extremely low rents.~~ high vacancy rates in provinces like Segovia highlight ongoing availability challenges.

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