Governments and local authorities should be able to ban short term rentals like Airbnb in areas of so-called “housing stress” under proposals for a new EU Affordable Housing Act published by the European Commission.
Areas of “housing stress” is defined as localities where there are not enough places for local people to live because of holiday lets, second homes or empty houses.
Presenting the plans earlier, the European Housing Commissioner, Dan Jørgensen, said the EU was determined to clear legal obstacles out the way so that councils and governments can take action.
“We are making sure that member states, if they want, in especially stressed housing areas, to give priority to the problem of a lack of affordable housing,” he said.
Councils “shouldn’t fear that they can be dragged into court by some of the big short term rental platforms, for instance.”
The EU’s authority over housing issues is very limited. It is largely in the gift of local authorities and governments.
But Dan Jørgensen said the law was about making sure EU law wasn’t getting in the way, setting standards and giving governments and councils confidence to act.
But MEPs across the political spectrum today sounded quite sceptical about the Affordable Housing Act.
The Greens said that they fear the new rules would make it harder not easier for council to take action.
“Local authorities could face a maze of legal requirements before they can take action,” said Croatian Green MEP, Gordan Bosanac.
“This includes proving that short-term rentals have harmed housing availability for at least three years and that no other measure would work. This risks deterring public action, particularly when municipalities are facing wealthy corporate landlords and institutional investors.”
“The solution to the European housing crisis would only come by addressing its main cause, which is the lack of supply,” said the centre-right EPP group.
The EPP is also worried about holiday home owners getting bogged down in extra taxes.
“We are deeply concerned specifically about restrictions on secondary homes. Such an interventionist approach has had negative effects on employment and economic activity where it has been applied, including in France and Switzerland, while also raising serious concerns about the protection of the fundamental right to private property,” said Spanish MEP, Borja Giménez Larraz.
The proposals announced today are just the first stage. Member states and the European Parliament will now get the chance to scrutinise, amend and vote on the proposals before it potentially becomes law.
That process will take many months.