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Europe: The European Commission is preparing proposals that could give authorities a common framework for restricting short-term rentals in areas experiencing housing pressure.
A draft of the forthcoming Affordable Housing Act sets out criteria that local and national authorities could use to determine whether restrictions on short-term rentals are justified, according to Reuters.
Authorities would be expected to assess housing affordability using the relationship between property prices and household incomes, including how that relationship has changed over time.
Population growth and trends in housing supply and demand could also be considered when establishing whether pressure is likely to continue.
The draft states that any restrictions should be proportionate, non-discriminatory and introduced in the public interest.
Quantitative limits on short-term rentals in housing-stressed areas could be considered, while grandfathering provisions could allow existing operators to continue under previous regulations. The draft suggests that these measures may be more appropriate than outright restrictions on purchasing or using properties.
The proposals follow regulatory action in destinations including Barcelona, Paris and Venice, where authorities have introduced measures intended to limit the effect of holiday rentals on local housing supply.
Computer and Communications Industry Association Europe, whose members include Airbnb, called for the Commission to monitor restrictions introduced by national and local governments and ensure that proportionality requirements are enforceable.
The legislation would be separate from the EU’s short-term rental data regulation, which took effect in May 2026. That regulation establishes registration and data-sharing requirements intended to give public authorities greater visibility of activity across platforms.
The Affordable Housing Act is due to be presented by European Commission executive vice-president Teresa Ribera on 9 September. Its provisions could change from those contained in the draft.
The proposal would then need to be considered by EU member states and the European Parliament before becoming law. It therefore does not immediately authorise or introduce new restrictions on STR operators.
Highlights
- A draft EU proposal sets out criteria for identifying areas experiencing housing pressure.
- Authorities could consider property prices, household incomes and housing supply when assessing the need for STR restrictions.
- Quantitative caps and protections for existing operators are among the measures discussed.
- Restrictions would need to be proportionate, non-discriminatory and in the public interest.
- The Affordable Housing Act is expected to be presented on 9 September 2026.
- The draft proposals have not been adopted and could change before becoming law.
- The initiative is separate from the EU short-term rental data regulation introduced in May 2026.
