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EU Affordable Housing Act and national regulatory debates

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2026-09-11 05:46 UTC → 2026-09-11 15:08 UTC · added ~~removed~~

~~European short-term rental regulation debate~~ EU Affordable Housing Act and national regulatory debates

On September 9, 2026, the European Commission ~~formally~~ proposed the ‘Affordable Housing ~~Act’. This legislative framework aims~~ Act’ to establish an EU-wide ~~definition of tight housing markets, providing local and regional authorities with the legal tools to combat~~ framework for addressing housing ~~shortages by regulating short-term tourist rentals. By creating a standardized definition of market pressure, the~~ shortages. The proposal ~~seeks to reduce the risk of~~ allows local ~~regulations being overturned by EU single market rules. Under the proposed framework,~~ authorities ~~can~~ to designate ‘housing stress ~~areas’ where average~~ areas’—where house prices are at least eight times the average local ~~income, provided this ratio has increased over the last decade~~ income and ~~is projected to remain high~~ have trended upward for ~~the next three years. Alternatively, an area may be classified as under pressure if~~ a decade, or where the ratio reaches ~~10. To justify limits~~ 10—to implement regulations on short-term ~~accommodations,~~ tourist rentals. To justify such measures, authorities must ~~demonstrate that these services have had~~ prove a significant negative impact on housing availability or affordability for at least three consecutive years. ~~Any such measures must be based on objective data, be proportional, and cannot be applied retroactively.~~ Commission President Ursula von der Leyen ~~emphasized that~~ noted the ~~move is a step toward tackling housing affordability, noting that many~~ act aims to prevent residents, ~~particularly~~ such as students and essential workers, ~~are~~ from being priced out of urban centers. ~~The proposal also encourages authorities to increase land availability and modernize urban planning. Debate has intensified regarding~~ National responses have emerged as the ~~focus of these interventions.~~ debate intensifies. In Spain, Housing Minister Isabel Rodríguez ~~has sought~~ is seeking parliamentary ~~cooperation~~ support for a ~~housing~~ decree-law that includes extending rental contracts until 2028 and increasing VAT to 21% for tourist apartments. ~~To further address the crisis,~~ Additionally, the Spanish government is utilizing the ‘Casa 47’ initiative, mobilizing approximately 201.7 million euros in subsidies ~~through the ‘Casa 47’ initiative~~ to encourage ~~private developers and investment funds to build~~ the construction of 2,425 affordable rental homes on public land. In Italy, the proposal has raised concerns among industry groups. A study by the Italian Association of Short-Term Rental Managers (Aigab) suggests many tourist destinations could face bans, noting extreme price-to-income ratios in areas like Cortina d’Ampezzo (38.31) and Amalfi (21.55). The Italian Federation of Real Estate Agents (Fiaip) has argued that such restrictions may infringe upon private property rights and suggested that structural solutions should instead focus on reducing tax pressure and simplifying urban planning.

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