European Commission to Propose Rules for Short-Term Holiday Rentals
The European Commission will seek to intervene in the short-term rental market, an area that has until now been under the full control of member states but where governments and local authorities have often failed. The Commissioner for Housing, Dan Jørgensen, believes that rentals on platforms like Booking.com and Airbnb are a contributing factor to the reduction in the number of houses available for long-term rental. In an interview in Brussels, the Danish commissioner stated that he sees an opportunity for the EU executive to propose rules to address what he calls "an important problem in many cities."
For now, Jørgensen has declined to provide specific details on the proposals being considered, but he guarantees that he will "present policies," including legislative ones, to address the consequences of the growth in this type of rental. These platforms have been identified as a factor in the declining availability of affordable long-term housing, a situation prevalent in Portugal. Investors and property owners should monitor these developments closely, as new regulations could impact the regulatory and legal frameworks governing rental properties.
"We have to recognize that the situation is so grave that we now have a social crisis in Europe," stated Dan Jørgensen. He emphasized the need to "wake up" and "assume responsibilities," a call to action directed not only at central governments and regional authorities but also at the European Union itself, which he believes has a new role to play. The announcement signals a potential shift towards more centralized control over a market that has transformed urban centers across the continent. For a deeper dive into market dynamics, our market insights page offers further analysis.
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The commissioner also framed the issue in political terms, warning of the risks of inaction. "If we, as politicians, do not take this problem seriously, do not recognize that it is a social problem that requires action, then the anti-EU populists will win," he argued. Jørgensen concluded with a promise to "ensure that the rights of tenants are taken seriously," indicating that the forthcoming policies will likely aim to rebalance the market in favor of residents. Property owners managing short-term lets may soon face new compliance standards. For guidance on navigating these changes, consulting with English-speaking real estate lawyers is advisable.
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