European cities could soon have greater power to restrict Airbnb-style holiday rentals in areas where short-term accommodation is putting pressure on local housing.
Image used for illustrative purposes/Oberon Copeland @veryinformed.com/Unsplash
The European Commission has announced its proposed Affordable Housing Act, which includes measures allowing authorities to identify areas experiencing housing stress and introduce targeted steps to protect housing affordability. Short-term rentals are a central part of the proposal.
The move comes as popular European destinations grapple with rising housing costs and concerns that homes are increasingly being used as tourist accommodation rather than long-term housing.
Under the proposed framework, authorities could introduce restrictions in areas identified as being under housing stress, with decisions based on factors including housing affordability, population trends and the balance between housing supply and demand. Measures would need to be proportionate and non-discriminatory.
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What it could mean for travellers
The proposals do not amount to an EU-wide ban on Airbnb or other short-term rentals.
Instead, they are intended to give cities and other authorities more room to respond where holiday accommodation is considered to be contributing to local housing pressure. The European Commission says short-term rentals also bring economic benefits to communities and tourism, meaning the challenge is finding a balance between visitors, hosts and residents.
The EU has already introduced new transparency rules for short-term rentals. Since 20 May 2026, new regulations have required greater collection and sharing of data from hosts and online platforms, giving authorities better information about the sector.
The issue is not limited to Europe. Cape Town is also considering tighter regulation of short-term letting, with the city’s proposed 2026 by-law requiring affected properties to register and potentially be treated as commercial accommodation if they are used for short-term letting for more than half of the year. The proposal is intended, among other things, to encourage properties back into the long-term rental market.
The Cape Town Collective Ratepayers’ Association has welcomed the principle of regulation but has questioned whether the proposed measures will do enough to increase long-term housing supply.
For travellers, the changes could eventually mean different rules from one destination to another, particularly in cities where housing shortages and tourism demand are putting pressure on residential neighbourhoods.
The European Commission’s proposal is part of a broader effort to tackle the continent’s housing crisis, with the Affordable Housing Act expected to provide a framework for authorities to respond to local housing pressures while retaining the economic benefits of tourism.
Source: IOL
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