Bulletin - European Union News Today
The framework sets a common test for "areas under housing pressure" and caps any local restriction at five years
EU Proposes Affordable Housing Act Giving Cities a Legal Route to Restrict Short-Term Rentals
The framework sets a common test for "areas under housing pressure" and caps any local restriction at five years
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On 9 September 2026, the European Commission proposed the Affordable Housing Act which is the first EU-wide legal framework that lets national, regional and local authorities restrict short-term rentals in designated "areas under housing pressure".
The proposal does not itself ban or cap listings and it sets the conditions under which a city may do so without breaching single market rules. It also removes the prior notification step under the Services Directive that platforms have used to contest local measures in court. The text now goes to the European Parliament and the Council so nothing changes for operators until both agree.
Official European Commission legislative proposal establishing the EU framework for the Affordable Housing Act and measures to address housing pressures.
How a city qualifies
An area qualifies when the average home costs at least eight years of per-capita disposable income and that ratio has risen over the past decade with no sign of easing within three years. Where the ratio reaches ten or more the historical test is waived.
Official European Commission factsheet outlining the Affordable Housing Act including its key measures, housing pressure criteria and framework for local action. | Source: https://ec.europa.eu/
What a restriction must look like
A short-term rental measure has to target activity that removes homes from the long-term market because of its scale or its frequency or its commercial nature. The authority must first show that such activity has significantly harmed affordability or availability for at least three years and that a lighter option would not achieve the same result. It must also have fully implemented the EU Short-Term Rental Regulation on registration and listing removal that has applied since May 2026. Also, owners who occasionally let their primary residence are exempt.
Affordable Housing Act Impact Assessment Report
European Commission assessment examining the housing challenges, policy options, expected impacts and evidence underpinning the proposed Affordable Housing Act.
European Commission Recommendation on the Affordable Housing Act
Official Commission recommendation outlining measures to improve housing affordability and supply and support authorities in addressing housing pressures across the EU.
Any measure a city adopts must be non-discriminatory and proportionate and expires after five years unless a review justifies renewing it. Nothing in the Act forces an authority to act or disturbs rules already in place, and where a city does impose conditions on property acquisition those conditions cannot reach back to earlier purchases and must arrive with transitional arrangements that trade press has read as grandfathering for current operators.
Vacant and second homes
The same framework covers prolonged vacancy and second-home purchases and allows cities to reserve new homes for primary residents or limit how long a property may sit empty. Housing Commissioner Dan Jørgensen cited cities where 20 to 30% of homes stand vacant.
European Commission Q&A explaining the Affordable Housing Act, its objectives, eligibility criteria and proposed measures to address housing pressure.
The numbers behind the proposal
Short-term rentals account for roughly 1.2% of EU housing stock but up to 20% in tourism hotspots while activity across major platforms rose 93% between 2018 and 2024. The Commission pointed to ten-year rent rises of 59% in Berlin and 103% in Lisbon.
Industry response
Airbnb said the plan "will not add a single home to the long term rental market, while adding regulatory uncertainty" and its shares fell around 3% in morning trading. EU Travel Tech, CCIA Europe and the European Holiday Home Association also oppose it, citing weak evidence linking rentals to the crisis and the loss of procedural safeguards. Executive Vice-President Teresa Ribera countered that when "the market fails to provide something as fundamental as affordable housing, public authorities have a responsibility to act".
⦾ Status: Proposal adopted by the Commission on 9 September 2026 and not yet law
⦾ Effective date: None until the European Parliament and Council agree
⦾ Registration required: Already mandatory in designated areas under Regulation (EU) 2024/1028 since May 2026 and a precondition for any new restriction
⦾ Night cap: None set at EU level although quantitative limits become available to qualifying local authorities
⦾ Housing pressure test: Price-to-income ratio of 8 or more that has risen over ten years and is unlikely to ease within three. The historical test is waived at 10 or more
⦾ Duration of restrictions: Maximum five years with renewal after review
⦾ Exemptions: Occasional letting of a primary residence. Acquisition rules apply going forward only
⦾ Penalty for non-compliance: Set locally and not specified in the proposal
⦾ Platform responsibility: No new obligations beyond the existing STR Regulation
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