Tourist rentals face EU plan for city curbs

The European Union is preparing rules to help cities curb short-term tourist rentals such as Airbnb in areas under housing stress, according to plans seen by AFP.

The European Commission is expected to unveil a legal proposal next week setting out when authorities can restrict short-term tourist lets without breaching EU single market rules.

Cities including Florence and Barcelona have sought to limit tourist rentals as residents complain about being priced out by visitors. Such curbs have often faced court challenges from rental providers and tourism operators.

Under the draft plans, cities, regions and other authorities could restrict access to short-term rentals, the provision of such rentals, and the purchase of property for short-term letting in areas “under housing stress”.

The draft sets out criteria for defining housing stress, including the gap between house prices and incomes in an area.

The legislation would not affect landlords renting out their own primary residence for short periods.

Brussels says housing affordability has become a growing problem across the 27-nation bloc. It says property prices have risen 60% and rents 20% over the past decade, leaving millions struggling to find an affordable home.

The EU says insufficient housing supply is the main driver, but that short-term lets add pressure in some areas by reducing supply and pushing up prices. Rental providers dispute that.

An Airbnb spokesperson said Europe's housing crisis needs structural solutions and that the act should focus on increasing housing supply.