The EU is drafting a plan to allow cities to manage short-term or vacation rentals without running into the confusing welter of court decisions and legislation that have met many cities’ programs—but proponents and critics alike agree it’s not a solution to a long-term housing shortage and high prices.
The draft plan is part of an overall ‘affordable housing’ plan, and would define areas of ‘housing stress’ where short-term rules would be applied without running into various EU competition and market rules. Factors used in determining housing stress include ratio between local house prices and income, population dynamics and future housing supply/demand.
Opponents of regulation, often landlord groups, say that despite appearances, Airbnb and similar short-term uses don’t actually drive prices up, and that prices have risen even where regulation is in place, and point out that only about 1.2% of Europe’s housing stock is used for short term rentals. But, in some areas it is over 20%, especially in tourism-heavy cities.
Holiday lets “can generate important economic and social benefits, especially for households struggling to make ends meet” but “they may also aggravate housing demand pressures in some constrained local housing markets,” the EU draft says. The proposed regulations would not affect individuals renting out their own primary residence for short periods.
Once released, the draft will have a substantial discussion period, and will require action by the European Parliament and the EU Council before taking effect.
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