EU to introduce short-term rental regulation for member states facing housing shortage

The EU is preparing new legislation called the "Affordable Housing Act" to help member states experiencing housing shortages. This law will allow cities and regions to take proportionate measures to limit Airbnb-style short-term rentals. While short-term rentals account for only 1.2% of the housing stock across the EU, this ratio can rise to as high as 20% in certain tourist hotspots.

Cities such as Amsterdam, Berlin, Brussels, Florence, Paris, Athens, and Barcelona have taken measures in recent years, such as licensing systems and limits on the number of nights. However, these regulations have been taken to court by property owners and the tourism sector on the grounds of violating the EU freedom of services. The European Court of Justice deemed proportionate restrictions justified on the grounds of housing shortage in 2020, but the concept of "proportionate" remains subject to legal debate.

Experts state that legal uncertainty prevents local administrations from taking bold measures, and municipalities with insufficient legal resources act more cautiously. As seen in the Florence example, court rulings remain mixed, and cities remain in a state of "recognized authority but persistent uncertainty." The EU's new law aims to reduce this uncertainty and provide a clear framework for local administrations.