The European Commission is working to solve problems caused by short-term rentals. Platforms like Airbnb and Booking.com affect Europe's housing affordability. The Commission presented the European Affordable Housing Plan in December 2025 and is now drafting a legislative proposal for late 2026. The initiative expands on the European Housing Strategy.
Proportionality guides the EC approach since any blanket restrictions might harm tourism which drives the economy in many regions. Instead, the future rules allow selective actions against the short-term rentals based on evidence. Authorities will act only where rentals reduce long-term housing for residents.
Identifying "Areas Under Housing Stress"
The new laws will set criteria to identify "the areas under housing stress." These are usually urban zones or tourist hotspots where the short-term accommodations reach critical levels there. European estimates show high numbers in some locations. Short-term rentals comprise up to 20% of the total housing stock and this shortage raises rents for locals.
Local and regional authorities in these areas will gain clear legal power and can introduce specific measures. These include:
Caps on the maximum nights a property rents out annually. Cities like Barcelona and Paris use this tool.
Seasonal rules that push properties toward long-term rentals. Owners might rent to residents or students during off-peak times.
Local officials may choose these measures but the EU will not force their use. It will provide a clear system since any actions must be justified and fair. They must follow single-market rules. This respects the principle of subsidiarity where the decisions are made closest to the affected communities.
Distinguishing Professional and Non-Professional Hosts
The proposal distinguishes between professional and non-professional hosts of short-term rentals. Professionals are business-like and high-volume. Non-professionals are occasional and private. This distinction helps balance the competition with traditional hotels and improve consumer protection regarding safety, liability, and service quality.
The rules clarify responsibilities of all parties. They fix unfair advantages held by large operators and individual hosts keep their opportunities.
Complementing the Existing Data Transparency Framework
The new proposal adds to Regulation (EU) 2024/1028 which covers data collection for short-term rentals. It passed in 2024 and applies starting May 2026. It introduces compulsory registration for hosts and properties and mandatory data sharing by online platforms with authorities which includes listings, bookings, and transactions.
These transparency rules improve monitoring and support tax compliance. They provide data to identify housing stress areas. The new 2026 proposal fixes remaining gaps which include targeted containment tools and stronger consumer safeguards.
Broader Context and Implications
Europe's housing crisis has grown worse. Construction costs are rising. Administrative hurdles and speculative pressures increase shortages in many cities. Short-term rentals are also a factor since the owners convert their homes to tourist use which displaces long-term tenants.
The Commission seeks balance. It keeps tourism’s economic and cultural benefits and also protects affordable housing. The plan avoids broad bans but instead uses local solutions based on data. This fits sustainable tourism goals and supports vulnerable groups like young people, students, and essential workers.
The legislative process runs until late 2026. Groups involved will help shape the final rules. These include platforms, hosts, operators, and housing advocates. The result could be a major step towards creating a fair and open rental market across the EU.
