The European Commission presented on Wednesday a legal framework for local authorities to adopt measures that limit the activity of short-term rental platforms such as Airbnb or the buying and selling of second homes. However, the community executive insists that these policies must be "proportional," applied only "on a case-by-case basis" in pressured areas, and approved after demonstrating that they are justified and time-limited.
The Affordable Housing Bill from Brussels "does not establish a catalog of measures that will always be compatible" with EU regulations, as that absolute certainty would be "impossible," community sources emphasize. The goal is to clarify how far public powers can go based on the "case-by-case analysis" of each intervention: how it is designed, what it aims for, and what effects it generates.
The new regulation —which still needs to be agreed upon between the Council (governments) and the European Parliament and will also apply to already approved rules when it comes into force— does not support general vetoes or restrictions. What it proposes is a methodology for municipalities and regions to demonstrate with data that a specific activity is causing a significant negative impact on the local real estate market due to its volume, recurrence, or commercial nature.
Thus, administrations that wish to intervene must prove that the tensions in the housing market, or their effect on affordability and available supply, persist for at least three years. They will also have to justify that the chosen response is proportional and that there are no less intrusive alternatives that achieve the same result. Any measure against tourist rentals must be tailored to the specific case and respect legal certainty and fundamental rights.
Authorities must also demonstrate that the proposed regulation is proportional and genuinely contributes to alleviating the pressure on affordable housing. Before acting, they will have to conduct a prior diagnosis that certifies that it is a "pressured" area, with parameters such as the purchase price of a home exceeding the net income of eight years of an average household.
Time limit on restrictions
The actions taken will have a maximum validity of five years, although this period may be reviewed periodically through new evaluations following the same methodology. Brussels also emphasizes that the restrictions "cannot replace measures aimed at the structural causes of the housing shortage, such as construction or renovation" of the residential stock.
In relation to measures regarding second homes or properties vacant for long periods, the Commission intends to offer greater legal certainty. It warns that the conditions linked to the purchase cannot be applied retroactively, must include appropriate transitional regimes, and consider specific situations, such as prolonged absences for work reasons or long-term hospital admissions.
"When the market fails to provide something as fundamental as an affordable home, public authorities have the responsibility to act. With the Affordable Housing Law, we are providing legal certainty to local authorities, allowing them to take action and address one of the greatest problems of our time," reasoned the Vice President of the Community Executive for a Clean, Just, and Competitive Transition, Teresa Ribera.
According to the latest Eurobarometer cited by the Commission, more than half of residents in European cities consider housing an immediate and urgent problem in their environment. In Madrid, for example, for every 100 homes offered for long-term rental, there are 40 in the short-stay market.
In this scenario, the Commissioner for Energy and Housing, Dan Jorgensen, has emphasized that, although the construction of new properties and the rehabilitation of the existing stock "remain essential," the European Union must respond quickly to the difficulties of access to housing and "take advantage of what already exists."
"Housing is not merely a commodity. It is a right and a fundamental pillar of human dignity. Europeans should have the opportunity to live, work, and stay in the places they consider home. They should be able to find affordable and decent housing in the place where they wish to build their lives," he stressed.