The European Commission on Wednesday unveiled a plan to help cities curb short-term holiday lets such as Airbnb in areas hit by housing shortages.
The proposal aims to give local authorities a clearer legal basis to regulate short-term rentals in tourist hotspots, where finding affordable housing is becoming increasingly difficult.
“When the market fails to provide something as fundamental as affordable housing, public authorities have a responsibility to act,” Commission Vice-President Teresa Ribera said as she presented the measures.
In recent years, a growing number of cities around the world, from New York and Tokyo to Barcelona and Paris, have imposed or pledged restrictions on tourist accommodation rentals.
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In Europe, however, efforts to limit their spread have often been challenged in court by rental platforms, discouraging some municipalities from taking action.
The EU now wants to strengthen the legal position of local authorities by clarifying when they can intervene without breaching single market rules.
Under the proposal, cities would be allowed to restrict holiday lets and the purchase of property intended for short-term tourist rentals in areas deemed to be under housing pressure.
The text sets out several criteria for identifying such areas, including the gap between property prices and residents’ incomes.
The future law would not apply to owners who occasionally rent out their main home for short periods. Nor would it overturn local rules already adopted before it comes into force.
Any restrictions on short-term rentals would also have to be non-discriminatory, proportionate and time-limited, with a maximum duration of five years.
The proposal must still be negotiated with the European Parliament and EU Member States before it can take effect.
