In 2026, the European Commission will present a legislative proposal on short-term rentals, in which it will define areas with real estate pressure to limit this type of accommodation – aiming to prevent local residents from being “evicted” from where they live.
“We cannot stand idly by while local citizens are pushed out of the property market in the places where they were born or where they want to build a life. That is why we will present a new legislative proposal on short-term rentals next year,” announced European Commissioner for Housing Dan Jørgensen, alluding to a mechanism to assist local authorities, as well as central governments.
“This will not be a ban, (but) the proposal will help to define areas under property pressure (and this)will enable local authorities to promote affordable housing in their cities and regions and take proportionate measures to address the negative impacts of short-term rentals,” Jørgensen added.
The commissioner was speaking to the European media on the day he presented a plan to increase affordable housing in the European Union (EU) – the first of its kind at EU level and covering limits on ‘AL’/ local accommodation.
According to Jørgensen, “examples of such measures could be a maximum number of nights rented per year or limiting rentals to summer, and renting to students during the rest of the year”.
In addition, “local authorities may also temporarily suspend new approvals for short-term rentals in central neighbourhoods and require the approval of operators wishing to rent spaces commercially for tourism purposes.”
The plan includes a strategy for housing construction (focusing on vacant houses and the renovation and conversion of buildings), the simplification of construction rules (such as licences) and the revision of state aid rules (making it easier for Member States to invest in affordable and social housing).
It also covers strengthening European funds (from the long-term EU budget, cohesion, the InvestEU programme, and the European Investment Bank), the fight against property speculation (with greater transparency in the sector), and a new law on AL/ local accommodation (with a legal framework for local authorities to act).
Attention in the plan is given to young people – including students – who are among the groups most affected by the housing crisis, with measures to mobilise investment in university residences, and to avoid excessive deposits.
Cooperation structures will also be created, such as a Housing Alliance, involving Member States, mayors and regional authorities, as well as market monitoring mechanisms.
The European Union is facing a housing crisis in countries including Portugal, where house prices and rents have risen significantly, making it difficult to find affordable housing, especially for young people and low-income families.
House prices in the EU have risen by an average of up to 60% since 2015, with some Member States (like Portugal) recording increases that are much higher – while rents and energy costs have also continued to rise.
However, residential building permits have fallen by around 22%.
Portugal is one of the EU countries experiencing double-digit annual growth in house prices, driven by strong demand and limited supply.
Added to this is the pressure on AL/ local accommodation, which in some parts of the EU accounts for up to 20% of the housing stock and has grown by more than 90% in the last 10 years.
Source: LUSA
