EU Plans to Restrict Airbnb and Short-Term Rentals Amid Housing Crunch
European Commission Proposes New Rules for Short-Term Rentals
By Foo Yun Chee
Background: Housing Crunch in Tourism Hotspots
BRUSSELS, Sept 9 (Reuters) - Airbnb and other short-term home rental companies are set to face more restrictions as the European Commission on Wednesday proposed rules to help authorities tackle a housing crunch in tourism hotspots.
The move by the EU executive aims to harmonise rules across Europe after authorities in cities including Paris, Barcelona and Venice turned to a raft of diverse rules to crack down on Airbnb, which subsequently triggered legal challenges.
Impact on Residents and Protests
The shortage of affordable housing due to the surge in short-term holiday rentals has prompted residents, especially young Europeans, to take to the streets to protest.
Commission’s Statement and Objectives
"A year ago, I promised to tackle Europe's housing affordability," Commission President Ursula von der Leyen said in a statement.
"Today, we are taking one step in this direction. By providing more clarity and support to local authorities and communities, anchored in local realities," she said.
Legislative Process and Framework
The proposal, which will need to be agreed with EU countries and the European Parliament in the coming months before it can become law, provides a first-ever common European framework for assessing housing measures.
Criteria for Identifying Housing Squeeze
The Commission said authorities can identify areas with a housing squeeze by checking whether the price-to-income level is high or if there has been an upward trend for the past 10 years, confirming a Reuters story last week.
Conditions for Restrictions
It said any subsequent restrictions against short-term rental must be based on evidence, necessary and limited to the affected areas, and not be retroactive.
Recommendations for Local Authorities
It will be up to authorities to decide whether to take action. The proposal also recommends authorities unlock land for housing and modernise the planning and construction process.
(Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta and Jan Harvey)
