Airbnb and other short-term rental operators would be subject to new, harmonized restrictions across the European Union under a draft law intended to tackle affordable housing shortages in high-tourism locations.
The draft proposal, known as the Affordable Housing Act, will be presented by European Commission Vice-President Teresa Ribera on September 9. If introduced as proposed, the measure would create a common framework for national and local authorities to determine when and how to limit short-term lets. The text must undergo review by EU member states and the European Parliament before it could become law.
Uniform criteria for assessing housing stress
The draft sets out specific criteria officials should use to assess whether housing pressure warrants restrictions on short-term rentals. Central among those metrics is the price-to-income ratio - a comparison of the cost of buying a home with household earnings - and how that ratio has changed over time. The proposal also instructs authorities to examine population growth and patterns of housing supply and demand, along with other indicators that point to persistent housing pressure.
By prescribing these measures, the Commission aims to create an evidence-based trigger for action so that limits are applied where housing shortages are demonstrable, rather than by ad hoc local measures alone. The proposal emphasizes that assessments should capture both current strain and signals that pressure will continue.
Principles for any restrictions
The draft states that any restrictions on short-term rentals must meet three conditions: they should be non-discriminatory, proportionate to the problem identified, and serve the public interest. In practice, the proposal suggests that areas declared to be under housing stress may be better served by quantitative limits or by grandfathering rules - measures that restrict future activity while preserving existing arrangements - instead of complete bans on property purchases or use.
Several European cities, including Paris, Barcelona and Venice, have already implemented local crackdowns on short-term lets. The Commission's proposal seeks to translate those individual efforts into a harmonized approach at the EU level.
Implications for stakeholders
The draft directly references short-term rental platforms and signals that national and local authorities will have clearer legal tools to limit listings where housing affordability is impaired. The proposal leaves decision-making to competent authorities but constrains those decisions with defined metrics and legal principles.