As cities across Europe grapple with rising housing costs, short-term rentals are coming under renewed scrutiny. Even before last year’s EU rules take effect, some lawmakers are already pushing for tougher restrictions.
The short-term rental market has exploded in recent years, now accounting for roughly a quarter of all tourist accommodation across the European Union. While platforms like Airbnb offer benefits for hosts, tourists, and regional economies, studies warn that lax regulation is fueling skyrocketing housing prices, pushing out long-term residents, and driving over-tourism in popular cities.
So far, patchy local rules have fragmented the EU’s internal market and left many listings operating illegally. To address this, new EU legislation—set to be enforced by May 2026—requires member states to tighten controls, improve transparency, and crack down on tax evasion. But some politicians argue these measures don’t go far enough.
The new legislation will allow local authorities to better enforce rules for vacation rentals so housing remains accessible for residents. — Kim Van Sparrentak (Greens/EFA, NL), rapporteur of the EU regulation for short-term rentals
The rules approved in April 2024 will oblige online platforms to introduce clear registration processes for hosts, share data with authorities, and display registration numbers on listings. Platforms must also verify host information and conduct spot checks. Authorities can suspend registration numbers, demand removal of illegal listings, or impose fines on non-compliant platforms and hosts.
Kim Van Sparrentak (Greens/EFA, NL), rapporteur for the legislation, says the new rules “will allow local authorities to better enforce vacation rental regulations so housing remains accessible for residents.” Still, voices in the European Parliament want stronger action.
The strongest calls come from the Socialists and Democrats faction in the European Parliament. The group recently published a proposal demanding tougher rules. While it is declaratory only—since members of the European Parliament cannot officially propose legislation—it signals a growing focus on housing.
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Nightcaps and zoning restrictions
The “Socialist” draft underlines that it does not intend to wipe out platforms like Airbnb from European cities. It does, however, highlight research linking high densities of short-term rentals to soaring housing costs in cities like Barcelona, Florence, and Lisbon. They warn that mass rentals turn residential neighborhoods into tourist zones, disrupting communities.
Their proposal calls for a clear distinction between casual hosts and professional operators, based on rental days and units offered. It suggests member states could impose measures such as nightcaps on rentals, stricter authorization schemes, zoning restrictions in high-pressure areas, and enhanced health and safety standards including fire safety, sanitation, and insurance requirements.
And it’s not only the Socialists who are concerned about the ever increasing housing costs in the EU — with short-term rentals only deepening the issue.
Affordable housing among EU priorities
Right now, a group of 33 members of the European Parliament is trying to find an answer on how to make sure that locals don’t lose out on housing because of tourism. The special committee on housing, which was set up in December last year and will operate for 12 months with the possibility of a 6 months extention, aims to “propose solutions for decent, sustainable and affordable housing”. One of the tasks being to “analyse systemic issues with short-term accommodation rentals and their impact on the availability of affordable housing in particularly affected areas and to make relevant proposals”.
And it’s not only the Parliament. The European Commission is, for the first time in history, coming up with the so-called European Housing Action Plan. It is currently under consultation and should be adopted by the College of Commissioners in early 2026.
And there are clear instructions to focus on short-term rentals as well. The Danish Social Democrat politician Dan Jørgensen who is in charge of housing and energy in the current European Commission (for the first time ever) was tasked with working to reduce housing prices, leading to cheaper houses and apartments, and also to “tackle systemic issues with short-term accommodation rentals and make proposals to tackle the inefficient use of the current housing stock.”
