The EU’s executive branch is set to propose new rules to address the significant issue of short-term rentals through platforms like Airbnb and Booking.com. This move comes as the bloc’s first housing commissioner aims to tackle the “social crisis” of people finding it difficult to afford homes.
In an interview with the Guardian and other European newspapers, Dan Jørgensen stated that Brussels policymakers must take housing seriously or risk losing ground to anti-EU populists, who he believes lack solutions to the affordable housing shortage.
Jørgensen emphasized the urgency of the situation, warning that if policymakers fail to recognize and act on this social problem, anti-EU populists could gain support. He noted that Brussels has so far fallen short in addressing key aspects of the housing crisis.
As a Danish Social Democrat, Jørgensen is leading the effort to develop the EU’s first-ever affordable housing plan, which is now scheduled for release in December, moved up from 2026 due to the pressing nature of the crisis.
Although the EU has traditionally avoided housing policy, Jørgensen insists it falls within its scope. He explained that the upcoming plan will focus on areas where housing is clearly a European responsibility and where previous efforts have been inadequate, including the need for more regulations on short-term rentals.
The rise of short-term rentals via Airbnb and similar sites has been blamed for increasing rents, displacing residents from city centers, and transforming residential areas into tourist hubs. Jørgensen described this as a major problem in many cities but did not specify which platforms or proposals are being considered.
This concern arises amid a broader surge in housing costs. From 2010 to 2023, EU house prices rose by 48% and rents by 22%, while inflation increased by 36%, according to Eurostat. Some countries experienced even sharper hikes, with rents jumping 211% in Estonia, 169% in Lithuania, and 98% in Ireland.
By 2023, nearly 9% of the EU population was spending 40% or more of their disposable income on housing, including 29% in Greece, 15% in Denmark, and 13% in Germany.
Jørgensen, who also works on reducing energy prices, said the housing plan will address the “financialisation” of housing, where properties are treated as speculative assets without regard for societal impact. He mentioned that the commission is reviewing measures taken by member states, such as requiring developers to include affordable housing in their projects.
The European Commission, under Ursula von der Leyen, is exploring bold ideas that may challenge EU law. Spain, for instance, plans a 100% tax on properties bought by non-EU residents, and socialist MEPs are pushing for a ban on foreign real estate purchases.
Additionally, Jørgensen noted that the commission is looking at ways to strengthen tenants’ rights and relax state-aid rules to help governments provide subsidies or tax incentives to housing companies.
Von der Leyen established the housing commissioner role in 2024 to secure support from socialist members of the European Parliament for her second term.Skip past newsletter promotion
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Local residents protest against tourist rental apartments in Barceloneta, Barcelona. Photograph: Pau Barrena/AFP/Getty Images
Socialist MEPs, who have long advocated for a greater EU role in housing, were concerned after losing votes in the 2024 European elections, where nationalist and far-right parties gained ground. A post-election survey by the European parliament revealed that rising prices and the cost of living were the primary factors influencing voters, with 42% of respondents citing these issues.
Last month, von der Leyen told MEPs that the EU requires “a radical overhaul of how we address this problem” and pledged to host “the first EU housing summit to prioritize it on our agenda.”
EU leaders will discuss housing at a summit next week, where they can share their perspectives on the upcoming strategy. Diplomats have cautiously welcomed the talks but emphasized that any European approach must account for differences in housing markets across the 27 member states.
So far, socialist MEPs have been leading the charge, but some of their proposals may be contentious, such as requesting €300 billion (£260 billion) in EU grants and loans for housing and suggesting changes to EU fiscal rules to promote more government spending in this sector.
Jørgensen avoided specifying a spending target – noting “we are talking about very, very big numbers” – but stated that public funds would sometimes be necessary to attract private investment. He mentioned that EU member states now have more opportunities to use EU funds for housing than before, pointing to a midterm budget review that increased available funding from €7 billion to €15 billion.
He argued that it’s time for the EU to approach housing with “fresh eyes,” comparing it to the COVID-19 pandemic, when the health crisis led to an unprecedented joint procurement of vaccines. “Just as with the COVID crisis, when we face new situations, we must redefine the role of the European Union,” he said.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about the EUs proposed regulations on shortterm rentals and their connection to housing affordability
BeginnerLevel Questions
1 What is a shortterm rental
A shortterm rental is a property or a room in a property rented out to guests for a short period typically a few days or weeks Platforms like Airbnb Bookingcom and Vrbo are the most common ways to list them
2 Why is the EU getting involved in shortterm rentals
The EU is stepping in because the rapid growth of shortterm rentals is causing problems in many cities Its making it harder for locals to find affordable longterm housing as properties are being converted into more profitable tourist rentals
3 How could shortterm rental rules make housing more affordable
By creating clearer rules and better data the regulations aim to ensure that a healthy number of homes are available for people to live in yearround If fewer apartments are used solely for tourists more can return to the longterm rental market which can help stabilize or lower rental prices
4 Will this mean I cant rent out my spare room anymore
No not at all The proposals are generally targeted at professional hosts who rent out multiple properties or entire apartments on a fulltime basis Renting out a single room in your primary home is typically not the main focus and will likely remain possible
5 Whats the main goal of these new rules
The main goal is to create a fair and transparent system across the EU This will help cities manage the impact of shortterm rentals protect the availability of longterm housing and ensure all players follow the same basic rules
Advanced Practical Questions
6 What specific data will platforms like Airbnb have to share
Platforms will be required to automatically share activity data with local authorities This includes
The number of guests and nights booked
The specific address of the rental property
The registration number of the host
7 How will the host registration number system work
Under the proposed rules cities can set up a system where hosts must register with their local authority They will receive a unique registration number which they must include on all their rental listings Platforms will be obligated to check and validate these numbers
