Adnkronos (Adnkronos) – Supporting EU Member States and cities in addressing the pervasive problem of housing affordability and availability in the areas most under pressure. This is the heart of the proposal launched today by the European Commission, the Affordable Housing Act, the first EU-wide attempt to address a problem that increasingly affects urban areas across the continent: the latest Eurobarometer found that over 50% of city dwellers consider housing an immediate and pressing issue where they live.
The Commission's proposal begins with an attempt to address the problem posed by the use of housing for purposes other than primary residence, such as short-term rentals, which, especially in cities with a strong tourist vocation, "can exacerbate local availability and affordability." The proposed law aims to address these highly localized issues by offering public authorities legal certainty when they choose to act, based on local specificities, within the framework of EU law. This also addresses legal challenges regarding the compatibility of local and EU law that have emerged in Member States that have already adopted measures to alleviate such pressures. In practice, the Affordable Housing Act does not impose obligations but provides the first common European framework for assessing housing measures that impact the single market, as European Commission Vice President Teresa Ribera explained during a press conference.
The decision to intervene, and which measures to adopt, remains with the competent authorities. "Housing policy decisions remain national, regional, and local," the European Commission emphasized in a statement, reiterating that the law is designed to provide legal clarity to authorities when they decide to intervene in areas experiencing housing tensions, while safeguarding the single market and fully respecting the principle of subsidiarity.
The new law aims to help competent authorities identify "areas subject to housing tension" by applying a new common methodology and shared technical criteria. If authorities choose to limit the use of housing, for example by intervening on short-term rentals or shared housing,
vacant properties, they must first “demonstrate that this contributes to local housing pressures and ensure that the measures are targeted, necessary and proportionate,” the Commission explains.
Regarding short-term rentals, local authorities' interventions may specifically target "activities that reduce the housing stock available for long-term use, particularly where their scale, frequency, or commercial nature exacerbates housing pressure," the press release states. Before introducing restrictions, authorities must demonstrate that short-term rental activity has had a "significant" negative impact on the affordability or availability of housing for at least three years, and that less restrictive measures would not be as effective. They will therefore be required to apply and enforce the EU regulation, including registration requirements and the removal or deactivation of non-compliant listings, and, where available, use the data collected to support their assessment.
In parallel with measures on short-term rentals, local authorities in the EU are also taking measures that impact the purchase or use of residential properties, such as second homes or properties left vacant for long periods. The Commission's proposal also provides a clearer framework for these initiatives, safeguarding legal certainty and legitimate expectations: "The conditions attached to the purchase cannot be applied retroactively; appropriate provisions must be provided for."
transitional measures and measures to combat long-term vacancy must take into account justified periods of non-occupancy,” the statement explains.
“For residents of areas under pressure, the aim is to ensure that measures taken at local level are better targeted, better supported by evidence, and reviewed over time, and that they are accompanied by interventions to increase housing supply,” the Commission statement continues, adding that housing investors and property owners active in multiple local markets will also benefit from greater clarity on the EU legal framework. The European Commission's proposal is accompanied by a Recommendation on housing affordability and supply in areas experiencing housing stress. This “supports authorities in their efforts to increase housing supply in the areas most in need, including through faster planning and permit issuance for new construction, renovation, and conversion of buildings,” as well as by facilitating investment. The Commission therefore encourages authorities to focus these efforts on increasing housing supply. The entire legislative proposal will now be submitted to the European Parliament and the Council under the ordinary legislative procedure.
In principle, short-term rentals "are a valid idea," and the European Commission "has no intention of opposing them as such" in its new legislative proposal for affordable housing. Dan
Jorgenson, the EU Commissioner for Housing, emphasized during the press conference presenting the law, that it does not impose obligations, but rather helps mayors of cities experiencing housing pressure—a metric made measurable by the proposal—to act within the framework of EU law.
For some, short-term rentals "represent an extraordinary opportunity to travel and visit countries they've never seen before; for others, they're a welcome source of income," says Jorgensen. However, "we find urban areas where the increase in short-term rentals has progressively driven ordinary citizens away from their homes, leading to completely unacceptable price increases." Hence the concern of 51% of Europeans, noted in the latest Eurobarometer, regarding the lack of affordable housing, which they consider a serious and urgent problem. "We are in the midst of a housing crisis: we must act," he adds.
The proposal therefore provides Member States and local authorities with the tools necessary to introduce measures that will help address some of the outstanding challenges. "We must be aware that a one-size-fits-all solution is unlikely to be feasible," Jorgensen emphasizes, explaining that it involves "the ability to identify specific areas experiencing housing pressure and, if common criteria are met in those areas, to introduce corrective measures" by regulating short-term rentals or vacant homes. "We are not imposing requirements or making these measures mandatory: we are simply clarifying that, if you intend to intervene in an area experiencing housing pressure, you can do so in compliance with EU rules, provided you have the relevant legal framework," he concludes.
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