European Commission to clarify rules on short-term rental and second home restrictions

AI-summarized · Neutrality-checked

The European Commission prepared a proposal to provide national and local authorities with clearer rules to restrict short-term holiday rentals and the purchase of non-primary residences. This initiative emerged as house prices across EU capitals rose by 64.9% and rents by 21.8% between 2015 and 2025, leaving nearly 10% of city dwellers spending more than 40% of their disposable income on housing. While short-term rentals represent 1.2% of total EU housing stock, they can account for up to 20% in tourism hotspots like Lisbon, Barcelona, and Prague, prompting concerns from residents and lawmakers like Leïla Chaibi regarding the financialization of housing. The Commission specified that these restrictions would only be permitted in areas demonstrating acute housing pressure and would prioritize targeting commercial multi-property operators while protecting the ability of individuals to rent out their main residences.

Consequences

Local authorities in high-pressure housing markets will likely receive a new legal framework to target commercial, multi-property short-term rental operators. However, the Commission acknowledged that these measures alone cannot resolve the broader structural housing shortage, which is compounded by high construction costs and permitting delays that leave supply falling short of demand by as much as 50% in some nations.

Sources

Know where. Know why.