EU Proposes New Framework to Restrict Short Term Apartment Rentals

The European Commission has introduced a housing regulation proposal designed to provide a clearer legal basis for member states to restrict short term apartment rentals. The initiative aims to address the housing crunch by ensuring that measures intended to protect long term rental supplies are not viewed as distortions of the single market. According to the Commission, the proposal does not mandate bans; instead, it provides a legal foundation for local and national authorities to implement targeted and proportionate restrictions in areas under pressure, specifically where rent and price ratios are high.

The final regulation must be jointly approved by the European Parliament and the Council of member state ministers, both of which may propose amendments during negotiations. During a presentation to the European Parliament's housing subcommittee, Commissioner Dan Jørgensen clarified that the EU is not forcing measures on member states but is creating the legal grounds for justified restrictions. Some representatives expressed dissatisfaction with the plan, including Borja Giménez Larraz of the center right European People's Party, who noted a lack of tax cuts in the proposal.