Full Breakdown
EU Proposes New “Affordable Housing Act” to Curb Short-Term Rentals
By Drooid · · How we work
Core Proposal: Tightening Short-Term Rental Rules
The European Commission unveiled the Affordable Housing Act, allowing EU cities to limit short-term holiday rentals and restrict property purchases for that use in areas identified as “under housing stress.” The measures aim to curb rising housing prices in tourist destinations. The proposal, announced on a Wednesday, still requires approval by the European Parliament, the Council and member states.
Background & Context
Platforms such as Airbnb and Booking.com have expanded rapidly, prompting protests in cities where locals say tourist-focused rentals push up rents and reduce affordable homes. Earlier attempts by Paris, Berlin, Barcelona, Venice and others faced legal challenges, leaving many municipalities without a clear legal basis. The new framework seeks to harmonise rules that previously existed only at national or municipal level.
Data & Statistics
- EU officials estimate that listings on major short-term platforms represent just over 1 % of Europe’s total housing stock, with the share climbing sharply in tourist hotspots.
- In some neighbourhoods, about 20 % of homes are used for Airbnb-type accommodation.
- The proposal defines “housing stress” using the ratio of local property prices to household incomes; authorities must demonstrate a significant negative impact of short-term rentals on affordability for at least three years before imposing restrictions.
Official Statements & Responses
- The Commission described the legislation as “proportionate” and expects critical voices from platforms but believes the approach is justified.
- It also recommended that authorities free up land for new housing and modernise planning and construction processes to increase supply.
Criticism & Opposition
- Alexandre Roure, head of policy at CCIA Europe (the lobbying group representing Airbnb and other platforms), warned that without “independent scrutiny or effective redress” the proposal could become a “paper tiger,” undermining legal certainty.
- Nikolina Brnjac, EPP Group housing spokeswoman, argued the Act fails to address the core shortage, noting a deficit of 9.6 million homes in Europe and the Commission’s target of building 2 million homes per year by 2035 as insufficient. She cautioned that restrictions on second homes could harm employment and property rights.
- Borja Giménez Larraz, EPP Group member, echoed concerns that limiting short-term rentals does not solve structural supply problems and may create “further imbalances.”
Verbatim Quotes
- “Without independent scrutiny or effective redress, this proposal will remain a paper tiger, leaving disproportionate restrictions in place and undermining the legal certainty the Affordable Housing Act is meant to provide,” — Alexandre Roure.
- “There’s no doubt that short-term rental has become a real challenge in many European cities,” — Dan Jørgensen, European commissioner for energy and housing.
- “That means focusing it (the regulation) where the shortage actually is: construction, renovation, and the homes standing empty across Europe today,” — George Mavros.
What’s Next
The Affordable Housing Act must be adopted by the European Parliament and the Council in the coming months. The European People’s Party (EPP) plans to present a separate “Housing Simplification Package” aimed at reducing administrative barriers to construction, slated for March 2027. Until the legislation is finalised, cities may continue to rely on existing national rules while awaiting clearer EU guidance.
