The European Commission will draft legislation to help European Union countries restrict short-term property rentals on platforms including Airbnb. The move was reported by the Financial Times.
Under the proposed legislation, individual cities and regional authorities across the bloc would gain the power to impose strict limits on holiday apartment rentals offered through online travel services.
European officials are developing the measure following growing concern over the impact of holiday accommodation on local communities. Increasing numbers of tourists have displaced local residents in popular areas and driven up residential housing prices sharply.
The European Commission serves as the executive body of the 27-nation European Union, holding responsibility for proposing law, enforcing union rules, and directing policy across member states.
Impact on European housing stock
Data from the Joint Research Centre shows that short-term rentals account for just 1.2 percent of total housing stock across the European Union. However, the proportion is significantly higher in popular tourist locations.
The Joint Research Centre functions as the internal scientific research service of the European Commission. Based across several European locations, the service provides independent scientific advice and statistical analysis to inform European Union policymaking.
In tourist hotspots such as Sorrento in Italy and Dubrovnik in Croatia, short-term holiday rentals reach up to 20 percent of all available residential housing stock.
Sorrento is a coastal town in southern Italy located along the Amalfi coast Peninsula overlooking the Bay of Naples. Dubrovnik is a historic medieval walled city situated on the Adriatic Sea in southern Croatia, known for its UNESCO World Heritage status and heavy tourist footfall.
Role of short-term rental platforms
Short-term rental services allow homeowners and landlords to offer residential properties to travelers for temporary stays. Airbnb, an online marketplace headquartered in San Francisco, California, is one of the largest digital accommodation platforms operating across Europe.
The proposed European Commission bill aims to establish a clear legal framework allowing national and regional governments to regulate short-term property listings. If the law is adopted, local authorities will be able to introduce targeted caps and rules on short-term rentals to protect housing availability for local populations.
The Financial Times, a daily financial newspaper based in London, reported that the initiative comes as municipal authorities across Europe seek formal backing to control local housing supply.
