EU plan would give cities wider powers to curb professional short-term rentals

A targeted response to housing pressure

The European Commission has set out plans to give cities and regions clearer authority to restrict short-term holiday rentals in neighbourhoods facing serious housing pressure. The framework would allow evidence-based controls on Airbnb-style activity, particularly where professional operators run multiple properties as tourist accommodation. It would not establish a blanket European ban.

The distinction between commercial portfolios and occasional home-sharing is central to the proposal. Authorities could target operators whose activity removes several homes from the long-term market, while protecting the ability of residents to rent out their primary home from time to time. Any limits would have to be justified, proportionate and linked to documented local conditions.

Why Brussels is intervening

Short-term rental activity across four major platforms grew by 93% between 2018 and 2024, according to figures cited by Euronews. Tourist-heavy cities including Lisbon, Barcelona and Prague have argued that rapid growth in holiday accommodation reduces long-term supply and intensifies rent pressures. EU data also show that almost one in ten city residents spends more than 40% of disposable income on housing.

The Commission has previously acknowledged that short-term rentals can support tourism, household income and renovation. Its own policy material also recognises an association between rapid rental-platform expansion and higher rents or sale prices in some cities. The proposed approach therefore emphasises local evidence instead of assuming that every municipality faces the same problem.

Rules would complement existing transparency measures

Existing EU legislation already requires host registration and transaction-data sharing between platforms and public authorities. The new initiative is intended to go further by clarifying what restrictions local authorities may impose in designated housing-stress areas. That could include measures aimed at multi-property commercial hosts, alongside planning or permitting changes intended to expand housing supply.

The European Parliament has called for a coherent, data-driven framework that could support tools such as zoning, authorisation schemes and night caps while respecting national and local authority. Parliament has also warned that tourism remains economically important and that rules should not unnecessarily burden ordinary residents or small rural operators.

What the proposal cannot solve

Brussels acknowledges that short-term rental limits cannot by themselves repair Europe’s structural housing shortage. High land and construction costs, slow permits, insufficient social housing and limited new supply remain major constraints. The final legislation will be judged on whether it gives cities usable legal authority without creating indiscriminate restrictions or substituting platform regulation for new homebuilding.