Brussels is seeking to bring down housing costs in Europe’s most popular cities by giving local governments the tools to rein in Airbnb and other short-term rental operators. As part of the European Commission’s Affordable Housing Act, due to be approved on Wednesday, EU-wide rules will determine whether an area is under housing stress, and national, regional and local authorities will be given legal backing to use targeted measures to ease home shortages. According to consulting firm AirDNA, there were roughly 60,000 active short-term rental listings in Paris last year, while short-term rental listings accounted for nearly 40 percent of available rental stock in central Porto, and as much as 56 percent of the long-term rental stock in some Madrid neighborhoods.
Barcelona plans to phase out its roughly 10,000 licensed tourist apartments by 2028, while Amsterdam, Florence and Paris have introduced licensing systems, rental caps or limits on new short-term lets. But those efforts have often triggered long legal battles. Homeowners and tourism operators sued Florence over its restrictions, and Airbnb challenged a €64 million fine Spain imposed after determining the platform included illegal listings.
While both efforts proved unsuccessful, they left local governments tied up in court. But those efforts have often triggered legal action. Although courts ruled in favor of the city governments, the lawsuits nevertheless tied up local authorities in costly, protracted court battles.
Jørgensen said the new legislation would “give the possibility to local authorities which want to take action, to do so in a way that is effective and that does not expose them to litigation risks.” The commissioner rejected industry allegations that restrictions could hurt tourism-dependent economies and homeowners who depend on rental income, insisting that “housing is a right, not just a commodity” and “people need to come before profit.” He also dismissed industry claims that the Commission is overreaching by legislating on housing, an area where the EU has limited direct competence. Jørgensen pointed out that, under the new plans, national, regional and local authorities will determine which areas are under housing stress and decide whether and how to intervene. Jørgensen said the new act represented a “key step to support cities, regions and countries that want to bring immediate solutions to the areas and the people most affected,” but stressed that it was not a panacea.
Extract — continue reading at the source.
