European Commission proposes new rules to allow cities to curb short-term rentals

European cities will gain more leeway to curb short-term rentals such as Airbnb under new EU plans that aim to bring down housing costs in tourism hotspots.

The European Commission laid out conditions on Wednesday under which local authorities can limit short lets, under a proposal seeking to address Europe’s “housing crisis”.

“Short-term rentals are a part of the problem in many cities,” Dan Jorgensen, the 27-nation bloc’s housing commissioner, told a press conference in Brussels.

Though hugely popular with visitors, short-term lodgings are blamed by residents in many popular travel destinations for depriving locals of flats for long-term rental and pushing up prices – something holiday-let providers dispute.

Cities from New York to Tokyo and Barcelona have imposed or considered restrictions on tourist flats in recent years. But curbs have often been met with court challenges, resulting in legal uncertainty.

The commission’s Affordable Housing Act – which still has to be negotiated with lawmakers and EU countries – aims to provide cities with legal cover, clarifying when authorities can take action without falling foul of the bloc’s single market rules.