EU to set rules letting cities restrict short-term rentals

The EU plans new rules to help cities restrict short-term rentals like Airbnb. This move aims to tackle rising house prices and protect local housing markets. The European Commission will unveil the legal proposal next week.

Local authorities can limit short-term lets in areas facing high housing stress. Housing stress areas will be defined by income levels and house prices. Cities can also stop investors from buying property for tourist rentals. These new rules will not affect people renting out their primary home.

In recent years, housing affordability has become a major issue across Europe. Property prices in the EU have jumped 60 percent over ten years. Rents across the bloc have also climbed 20 percent in that period. EU officials say low housing supply is the main cause of high prices. Short-term tourist rentals add extra pressure on local housing markets.

Cities like Barcelona and Florence have already tried to curb tourist lets. However, rental providers have challenged these local bans in court. The new Affordable Housing Act aims to make city restrictions legally clear. An Airbnb spokesperson said Europe should focus on building more homes instead.