By 2026, the European Commission intends to introduce a new legislative proposal focused on regulating short-term rentals. The proposal aims to identify areas experiencing housing pressure in order to limit the impact of such rentals on local residents and protect them from being displaced from their homes.
The European Commissioner for Housing, Dan Jørgensen, stated that the European Union cannot ignore the growing difficulty faced by local residents in securing housing in their own communities.
He explained that the upcoming proposal will provide local and central authorities with practical tools to address this crisis. He emphasized that the new regulation will not constitute a blanket ban, but rather a mechanism enabling affected areas to strengthen affordable housing by adopting appropriate measures to reduce the negative effects of short-term rentals.
Jørgensen highlighted examples of these measures, such as setting limits on the number of nights per year that properties can be rented in specific areas, or restricting short-term rentals to the summer season only, while allowing units to be used for student housing during the academic year.
He also mentioned the possibility of temporarily suspending new approvals for short-term rentals in certain locations, as well as requiring prior authorization for operators seeking to use properties for commercial tourism purposes.
This plan reflects a broader approach to boosting affordable housing across the European Union, with a focus on utilizing vacant homes, renovating buildings, and converting their designated uses. The Commission has also pledged to simplify licensing regulations and accelerate support for member states’ investments in social and affordable housing by reviewing state aid rules.
The plan further includes increased use of European financial resources, such as the EU’s long-term budget and investment programs like InvestEU and funds from the European Investment Bank. It also seeks to combat real estate speculation by enhancing transparency and establishing a legal framework that grants local authorities greater capacity to address the challenges posed by short-term accommodation.
Special attention has been given to young people and students, among the groups most affected by the housing crisis, with an emphasis on new investments in university housing and ensuring financial relief by reducing the deposit amounts required.
The initiative also includes the creation of new cooperation networks, such as a “Housing Alliance,” bringing together member states as well as local and regional authorities to monitor market dynamics and jointly tackle housing challenges.
The European Union is facing a severe housing crisis, particularly acute in countries such as Portugal, where house prices and rents have risen sharply, making it difficult for young people and low-income families to find affordable homes.
Since 2015, house prices have increased by an average of 60% across the EU, with some countries recording much higher rises, while rental and energy costs have also continued to climb. At the same time, the rate of issuing residential building permits has fallen by around 22% over the same period.
The situation is even more pronounced in Portugal, one of the European countries experiencing double-digit annual increases in property prices due to strong demand and limited supply. Short-term rentals have also contributed to worsening conditions, accounting for up to 20% of total housing stock in some parts of the EU, and having grown by more than 90% over the past decade.
