Airbnb curbs would get EU legal cover in housing plan

European Commission plans would give cities more legal certainty to restrict short-term rentals such as Airbnb in areas facing housing pressure.

The proposal, laid out Wednesday as part of an affordable housing package, still has to be negotiated with European Union lawmakers and EU countries. It aims to clarify when local authorities can act without breaching EU single market rules.

Dan Jorgensen, the EU housing commissioner, said in Brussels that short-term rentals are “a part of the problem in many cities” and that authorities should not fear being taken to court when they act within the rules.

Under the plan, cities and other relevant authorities could limit holiday rentals and the purchase of property for short-term letting in areas deemed to be under housing stress. The proposal defines such districts as places where the price of an average-size home is at least eight times locals' disposable per-capita income.

Before introducing restrictions, authorities would have to show that short-term rentals had a significant adverse effect on housing affordability or availability for at least three years. Measures would have to be non-discriminatory, proportionate and limited to five years.

The legislation would not affect landlords who rent out their own primary residence for short periods. It also would not affect city rules introduced before the law is adopted.

The Commission says property prices in the EU have risen by 60 percent over the past decade, while rents have climbed by 20 percent. It says short-term rental activity grew 93 percent across four major platforms between 2018 and 2024.

Jorgensen said rents over the past 10 years had risen by 59 percent in Berlin, 75 percent in Madrid and 103 percent in Lisbon.

Tech lobby group CCIA, whose members include Airbnb, said the rules were a “clear improvement” over what it called cities' “restrict-first-ask-later” approach, but criticised the lack of independent scrutiny and redress. Airbnb said the plan as drafted would “not add homes” and would create more regulatory uncertainty for hosts.

Rental providers dispute that holiday lets are to blame for rising housing costs. Airbnb said short-term rentals generated about 40 billion euros in tax revenue and more than two million jobs across the EU in 2023.