03 / 10
EU proposes short-term rental restrictions
The EU wants cities to have clearer legal room to restrict holiday rentals where housing is scarce.

What happened
The European Commission proposed an Affordable Housing Act to give local authorities clearer legal grounds to curb short-term holiday lets and purchases of homes for that use. Measures would need to be targeted, proportionate, justified by local housing pressure and limited in time. It is a proposal, not an EU-wide ban.
Numbers
- 1.2%Share of EU housing stock — Short-term rentals across Europe
- 20%Share in some tourist neighbourhoods — Where holiday demand is concentrated
- 60%EU house-price rise over 15 years — Across the bloc
- Nearly 30%EU rent rise over 15 years — Across the bloc
Questions
- Who must approve the plan?
- EU lawmakers and member-state governments must negotiate the act before its legal framework can take effect across the bloc.
- Why are cities seeking legal cover?
- Court challenges have left local curbs uncertain under single-market rules, so the Commission aims to clarify when intervention is lawful.
- Why does concentration matter?
- Holiday rentals form a small share across Europe but can occupy a much larger share in tourism-heavy neighbourhoods, reducing long-term supply.
- What do rental providers want?
- They want rules that prevent blanket local bans, arguing clearer limits can protect hosts while letting holiday rentals continue.
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Support and opposition
Who supports this, and why
Cities and tenants — Targeted, temporary limits can return homes to long-term residents where tourism has reduced supply.