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EU Moves to Regulate Short-Term Rentals to Combat Housing Affordability Crisis

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26 January 2026

EU Moves to Regulate Short-Term Rentals to Combat Housing Affordability Crisis

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In response to the growing housing affordability issue exacerbated by short-term rental platforms like Airbnb and Booking.com, the European Commission has proposed new restrictions targeting the short-term rental market. Aiming to balance the economic benefits of tourism with the need for affordable housing, the proposal introduces measures to identify stressed areas and empowers local authorities to impose specific limits and regulations. The initiative is part of the broader European Affordable Housing Plan and seeks to ensure the long-term availability of housing for residents while maintaining fair market competition.

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The European Commission is poised to introduce new regulations to mitigate the adverse effects of short-term rentals on the housing market across Europe. With the European Affordable Housing Plan as a foundation, the commission presented a legislative proposal targeting a late 2026 implementation window. The directive aims to address concerns that short-term rentals are inflating housing prices and limiting availability for local residents.

A central aspect of the proposal is the identification of "areas under housing stress"—typically urban centers or popular tourist destinations—where short-term rentals take up a significant portion of the housing stock. In these identified locales, local and regional authorities will be empowered to implement tailored interventions. Potential measures include capping the number of rental nights allowed annually and instituting seasonal rules that encourage long-term rentals during off-peak periods.

The planned regulation also introduces a distinction between professional and non-professional hosts, helping create a level playing field among different rental providers and safeguarding consumer interests regarding safety and service quality.

Furthermore, the proposal complements the existing Data Transparency Framework outlined in Regulation (EU) 2024/1028. This framework mandates compulsory registration for hosts and data-sharing by platforms to enhance monitoring and tax compliance. The new rules are designed to close existing gaps and bolster consumer protections.

Amid rising construction costs and speculative pressures aggravating housing shortages, the Commission's approach aims to support sustainable tourism while ensuring housing affordability, particularly for vulnerable groups like students and essential workers. The legislative process, continuing through late 2026, will involve stakeholders from all related sectors, seeking to craft a fair and open rental landscape across the EU.

For more details follow the link provided.

#Sustainable tourism #Responsible travel #Community-based tourism #Sustainable destinations #Tourism development

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