EU Targets Tourist Flats in Upcoming Housing Push

The European Union is preparing to target short-term holiday rentals as part of a broader drive to rein in rising housing costs across the continent. Under a proposed legislative initiative known as the Affordable Housing Act, the EU intends to grant local and regional authorities explicit legal cover to restrict tourist flats.

The move addresses a growing headache for cities across Europe, where property owners have increasingly converted long-term residential housing into profitable short-term holiday lets. By establishing a clear European legal framework, the legislation aims to allow municipal leaders to cap or regulate tourist apartments without fear of their local rules being overturned under broader internal market principles.

For residents in tourist-heavy cities, the proliferation of holiday lets has squeezed the supply of long-term rentals, driving up prices and pushing locals out of city centres. City halls have often struggled to restrict these platforms, caught between local demands for affordable housing and EU-level regulations protecting the freedom to provide commercial services across borders.

If enacted, the law would provide mayors and regional councils with the legal certainty required to clamp down on tourist rentals. For citizens, this could mean fewer residential apartments functioning as quasi-hotels and more properties returning to the long-term rental market. For holidaymakers and rental platform hosts, it signals a tighter regulatory environment where local bans or strict licensing quotas can no longer be easily challenged in court.

Housing has historically sat squarely within the jurisdiction of national and local governments, making any Brussels-led housing initiative a delicate exercise in subsidiarity—the EU principle that decisions should be taken as close to the citizen as possible. To intervene without triggering a territorial dispute with member states, European policymakers are framing the crackdown around single-market oversight and legal clarity.

In essence, local councils have spent years attempting to restrict short-term lets, only to face legal challenges arguing that such limits infringe upon basic European commercial freedoms. By offering an explicit legal shield at the EU level, Brussels is attempting to resolve a classic European dilemma: using EU legislation to allow local governments to suspend standard EU rules.

As the Affordable Housing Act takes shape, the proposal will need to navigate the usual legislative machinery, where member states and European lawmakers will scrutinise how much discretion local authorities should wield over private property. For municipal leaders seeking reinforcement against tourist rentals, the plan offers a clear direction of travel, even if converting a European proposal into local enforcement remains a lengthy procedural march.