Brussels considered on Wednesday, October 9, that local accommodation is "part of the problem" of the housing crisis in the European Union, proposing a new Affordable Housing Law focused on regulating short-term rentals. The European Commissioner for Housing, Dan Jørgensen, warned that the increase in short-term rental accommodations has led to people being excluded from their own homes, causing price increases that are "totally unacceptable".
In Lisbon, rents increased by 103% over the last 10 years, making it the European city with the sharpest rise among those mentioned, followed by Madrid with 75% and Berlin with 59%. Executive Vice-President Teresa Ribera stated that in some of Europe's most popular tourist destinations and urban centers, short-term accommodations can represent up to 20% of dwellings, significantly affecting prices and rents.
The European Commission's proposal establishes a common framework to identify areas under housing pressure and define conditions for adopting restrictions on local accommodation. Restrictive measures may only be applied if authorities demonstrate that the impact on housing supply has persisted for at least three years, must be proportionate, based on objective data, and limited to the areas actually affected. Restrictions may remain in force for a maximum of five years, with the possibility of renewal, with primary residence being safeguarded.
Brussels argues, however, that limiting local accommodation alone does not solve the housing shortage, and measures are needed to increase supply through construction and rehabilitation. The proposal will now need to be negotiated by the EU Council and the European Parliament.
