EU plans tougher Airbnb rules to tackle housing shortages

The European Union is preparing tougher rules for short-term rental platforms such as Airbnb as it seeks to address the shortage of affordable housing in popular tourist destinations.

The plan appears in a draft law obtained by Reuters. European Commission Vice-President Teresa Ribera is expected to present the Affordable Housing Act on September 9. The proposal would create a common European framework after cities including Paris, Barcelona and Venice introduced their own measures against Airbnb.

The draft sets out when housing-market pressure could justify restrictions. Authorities would assess the relationship between property prices and residents’ incomes, as well as population growth and the balance between supply and demand. Possible measures include rental limits and protections for existing operators, which the Commission presents as preferable to a complete ban.

Any intervention would have to be nondiscriminatory, proportionate and in the public interest. The CCIA, a lobby group that represents Airbnb, warned against restrictions it considers excessive. It said the law would help neither property owners who earn additional income by renting out a room nor regions that depend on tourism if authorities did not carry out appropriate assessments.

EU member states and the European Parliament must still debate the draft. An EU regulation that took effect in May already requires short-term rental operators to share data with authorities.