EU Proposes New Rules to Curb Short-Term Rentals

The European Commission has proposed new rules to help national authorities tackle the shortage of affordable housing in areas with heavy tourist traffic. The proposed framework could lead to additional restrictions on Airbnb and other short-term rental platforms.

Brussels wants to standardize the patchwork of rules across Europe. Cities such as Paris, Barcelona and Venice have each introduced their own restrictions on short-term rentals, moves that have subsequently led to legal disputes. The rapid growth of the sector has contributed to housing shortages and sparked protests by residents, particularly among young Europeans.

The proposal creates the first common European framework for assessing housing conditions. Under it, authorities will be able to identify areas suffering from housing shortages based on a high ratio of housing prices to income, or on a sharp increase in that ratio over the past 10 years.

Any restrictions on short-term rentals must be evidence-based, necessary and limited to affected areas, and cannot be applied retroactively. The relevant authorities will decide whether to implement them.

CCIA Europe, the European arm of the Computer & Communications Industry Association (CCIA) and a group whose members include Airbnb, criticized the proposal for its lack of independent oversight and effective remedies regarding the restrictions.

The Commission also recommended making more land available for housing construction and modernizing planning and building approval processes. The proposal still requires approval from EU member states and the European Parliament.

(Reuters, bak)