EditEU housing plan targets short-term rentals and vacant homes
Housing costs are increasingly putting European cities out of reach for the people who live and work in them
The European Commission is proposing new rules to help cities and national authorities curb short-term rentals, vacant homes and other uses of housing that are driving up prices and reducing supply for permanent residents.
Housing costs are increasingly putting European cities out of reach for the people who live and work in them, with rents rising sharply in major urban areas and more than half of city dwellers now considering access to housing an urgent problem, according to data cited by the European Commission.
Over a decade, rents have risen by 59% in Berlin, 75% in Madrid and 103% in Lisbon, the Commission says. The consequences extend beyond affordability, as nurses, teachers, police officers, students and young people increasingly struggle to live where they work or study.
Against this backdrop, the Commission is proposing its Affordable Housing Act, aimed at providing a common European framework for national, regional and local authorities seeking to respond to housing shortages.
The proposal aims to establish greater legal certainty for authorities that want to restrict certain uses of residential properties when these contribute to a reduction in housing available to permanent residents.
“A home shouldn’t primarily be a commodity on the market. Having a home is a human right,” Energy and Housing Commissioner Dan Jørgensen said at a press conference in Brussels. “We are in a housing crisis. We must act,” he said, while pointing to short-term rentals as part of the problem in some cities.
The Commission does not oppose short-term rentals in principle, Jørgensen stressed. They can provide an income for property owners and support tourism. The problem arises when their expansion “drives ordinary people out of their homes” and contributes to sharp increases in housing costs.
Giving cities room to act
The Commission’s proposal is aimed in particular at cities where existing attempts to address housing pressures have faced legal challenges.
Executive Vice-President Teresa Ribera said many mayors and city councils had already introduced measures to deal with housing shortages, but that such interventions had in some cases been challenged in court.
“For this very reason, a legal framework is necessary,” Ribera said.
The proposed framework would establish a common methodology for identifying “areas under housing pressure”. In such areas, authorities could impose restrictions on uses such as short-term rentals or long-term vacant properties, provided they can demonstrate that these are contributing to the local housing problem.
Any measures would have to be targeted, necessary and proportionate, reflecting the principle of subsidiarity and the specific circumstances of each area.
The most sensitive issue is short-term rentals. Before imposing restrictions, authorities would have to demonstrate that these activities have had a significant negative effect on housing availability or prices for at least three years, and that less restrictive measures would not be sufficient.
The restrictions would also have to focus on activities that effectively remove properties from the long-term residential market, particularly where short-term rentals are frequent or commercial in nature.
Authorities would also have to fully implement the EU’s existing regulation on short-term rentals, including property registration and the removal of non-compliant listings. Where available, data collected through that system could be used to support restrictions.
Second homes and empty properties
The proposed framework goes beyond tourist rentals. It also covers measures concerning the purchase and use of residential properties, including policies aimed at reducing the number of second homes or properties left vacant for extended periods.
Jørgensen pointed to cities where 20% or 30% of homes can sometimes be vacant, arguing that local authorities should be able to intervene where housing supply is already insufficient.
Possible measures could include reserving new homes for primary residents, limiting extended periods during which properties remain unoccupied, or introducing primary residence requirements. None of these solutions, however, would be imposed by Brussels.
Ribera similarly stressed that second homes would remain part of the European market. But in areas under particularly strong housing pressure, local authorities should have the ability to define primary residential zones and address situations where vacant properties coexist with a shortage of affordable housing.
The Commission also proposes safeguards for owners and investors. Restrictions on property purchases could not be applied retroactively, transitional arrangements would have to be provided, and measures targeting unused properties would need to take justified periods of vacancy into account.
The legislative proposal will now go to the European Parliament and the Council, which will negotiate it under the ordinary legislative procedure.
The full article by EUalive’s partner Focus Europe Italy can be found here.
Caption: An excavator stands near a new apartment house and an apartment building under construction in Prague, Czech Republic, 29 April 2026. In 2026, apartment prices in the Czech Republic are expected to rise by more than seven percent. Although the supply of new apartments on the market in Prague and across the country increased by approximately three percent, strong demand for housing continues to push prices higher, according to a study involving 36 development companies specializing in residential construction. EPA/MARTIN DIVISEK
Updated: September 10, 2026 - 05:23
