Tourists set to face new hurdle as EU’s crackdown on holiday rentals moves forward

Short-term home rental platforms, including Airbnb, are facing fresh limits after the European Commission proposed new rules on Wednesday to help local authorities address housing shortages in tourism hotspots.

The initiative by the EU executive aims to create unified regulations across the bloc, following a mix of local curbs in destinations such as Paris, Barcelona and Venice that led to legal challenges.

Surging numbers of holiday rentals have restricted the availability of affordable homes, driving residents, particularly younger citizens, to stage street protests.

"A year ago, I promised to tackle Europe's housing affordability," Commission President Ursula von der Leyen said in a statement.

"Today, 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.

Subject to agreement by EU member states and the European Parliament over the coming months, the draft measures will establish a first common European framework for assessing residential housing policies.

According to the Commission, local officials can identify strained housing markets by monitoring high price-to-income levels or sustained upward trends over a 10-year period.

Any subsequent curbs on short-term rentals must be necessary, supported by evidence, limited strictly to the impacted areas, and not applied retroactively.

Airbnb aligned itself with the tech lobby group CCIA Europe in requesting independent review or redress mechanisms. The firm maintained that the main issue remains a shortage of available properties.

"That means focusing it (the regulation) where the shortage actually is: construction, renovation, and the homes standing empty across Europe today," George Mavros, Airbnb's head of government affairs for the European Union, said in a blogpost.

CCIA Europe's head of policy Alexandre Roure challenged the plan to let cities oversee their own enforcement.

"Without independent scrutiny or effective redress, this proposal will remain a paper tiger, leaving disproportionate restrictions in place and undermining the legal certainty the Affordable Housing Act is meant to provide," he said.

Individual authorities will determine whether to implement actions. The Commission also advised local councils to free up land for residential building and modernise construction and planning processes.