A new framework for the operation of Airbnb and other short-term rental platforms is being prepared by the European Union, with the aim of giving cities and regions greater flexibility to restrict tourist rentals in areas where they contribute to housing shortages and make it more difficult for permanent residents to access housing.
The new regulations are expected to be included in the Affordable Housing Act, the legislative initiative on affordable housing currently under development. According to the Financial Times, the European Commission plans to present the relevant legislative package by the end of 2026.
At the heart of the initiative is the determination of the restrictions that local and regional authorities will be able to impose in areas where demand for housing is particularly high. The initiative comes largely in response to the experience of popular European tourist destinations, where the expansion of short-term rentals has intensified pressures on the housing market.
At the European Union level, short-term rentals account on average for around 1.2% of the total housing stock. In some of the most popular tourist destinations, however, the figure is multiple times higher. In Sorrento, Dubrovnik and Fuerteventura, it can reach as much as 20%.
From Paris to Barcelona
Several European cities have already attempted to restrict tourist rentals through their own measures. Paris has restrictions in place on short-term tourist rentals, while Barcelona has announced plans for the gradual phase-out of existing licences for tourist apartments by 2028.
Local authorities, however, often face legal challenges from property owners and representatives of the tourism industry. It is precisely this uncertainty that the European Commission is seeking to address.
Municipalities are reluctant to adopt stricter restrictions when it is unclear whether these measures will withstand judicial scrutiny. One of the key issues expected to be at the heart of the European debate is the extent to which authorities can restrict property owners’ right to offer their properties to tourists.
No blanket ban
The European Commission is not considering imposing a blanket ban on Airbnb across the EU. The logic behind the new legislation is to give local authorities the tools to intervene in a targeted manner when a housing market is under particularly intense pressure.
In this way, Brussels is seeking to strike a balance between the need to protect housing and maintaining the economic benefits associated with tourism and short-term rentals.
After all, the European Commission views short-term rentals as just one of the factors contributing to the European housing crisis. House prices have increased significantly over the past decade, while the supply of new homes has failed to keep pace with demand. The shortage of new housing and other structural problems in the market are therefore equally important causes of housing pressure.
The next step after transparency
For short-term rental platforms, the new initiative marks another step towards a stricter European regulatory framework.
Since May 2026, transparency rules have already been in force at EU level, providing for the registration of properties and the reporting of short-term rental data to the relevant authorities.
The next step could be the use of this data by cities to impose stricter restrictions in areas where housing is particularly expensive or supply is insufficient.
In this way, European policy appears to be moving from simply recording and ensuring transparency in the market towards a model of targeted local regulation, giving cities a greater role in controlling short-term rentals.
