The European Commission has proposed new legislation that it says is aimed at helping local authorities across the EU to tackle housing crises.
The EU body says that the proposals will give local authorities greater legal certainty about what measures they can take, within EU law, on issues such as short-term rentals, second homes, or prolonged vacancy.
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.
Airbnb and other short-term home rental companies are set to face more restrictions as the European Commission proposed rules to help authorities tackle a housing crunch in tourism hotspots.
“A year ago, I promised to tackle Europe’s housing affordability,” Commission President Ursula von der Leyen said in a statement.
“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.
The EU body says that the proposed EU Affordable Housing Act “brings clarity and predictability, and addresses the request of member states and municipalities for greater legal certainty on how they can act in the context of the EU’s single market”.
Lobbying group CCIA Europe, whose members include Airbnb, said the EU proposal fails to address the need for independent scrutiny of restrictions or effective redress.
“Europe will not solve its housing crisis by giving cities an EU framework to restrict short-term rentals and then letting them police their own compliance,” its head of policy Alexandre Roure said.
Before introducing restrictions, authorities must also show that short-term rental activity has had a significant adverse effect on housing affordability or availability for at least three years, and that less restrictive measures would not be equally effective.
The act also provides a framework for action on second homes or vacancy, including:
- Conditions linked to acquisition cannot apply retroactively,
- “Appropriate” transitional arrangements must be provided, and
- Measures addressing long-term vacancy should take into account “justified periods of non-occupation”.
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.
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.
NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.
