New rules proposed for short-term rentals in European cities

The European Commission has proposed a legal framework for short-term rentals (STRs) through platforms like Airbnb.

New legislation would see the introduction of mandatory rules for data-sharing between STR platforms and national authorities across the EU, whereby platforms would be required to automatically transmit aggregate data on the number of nights a house or apartment is being rented every month.

In July, the European Cities Alliance on Short-Term Rentals published an open letter on the need for legislative action on tackling illegal short-term rentals.

Mayors, deputy mayors and other city officials from Barcelona, Bologna, Brussels, Arezzo, Paris, Vienna, Amsterdam, Brussels, Lyon, Porto and Florence, as well as dozens of MEPs and the Eurocities network, signed the letter demanding action, stating their belief that the European Commission was abandoning the project of a legislative initiative to regulate short-term rentals.

“Cities and local authorities are not against STRs in principle,” Federica Bordelot, Senior Policy Advisor at Eurocities, told Cities Today.

“What they are trying to do is limit the illegal practices in the field and preserve the liveability of cities.

“This can mean a limit of STRs in certain areas where they see there is a lack of housing or a dramatic rise in prices.”

According to the European Commission, approximately 25 percent of all tourist accommodation in the EU is provided by STRs, with a 138 percent increase in the first half of 2022.

To date, cities have primarily been responsible for regulating the market, often through ad hoc registration schemes and restrictions as to the length and nature of rentals.

The new proposal – which needs to be passed by the EU Council and Parliament before it comes into force – will aim to introduce a harmonised framework for the sharing of information related to the STR market, introducing obligations on hosts, platforms and local authorities.

What’s the issue?

For years, cities across Europe have struggled to cope with the rise in STRs, which in some cases have led to inflated rent prices, a reduction in the supply of long-term housing and the fragmentation of communities.

In response to this, some local authorities have created specific fees for short-term rentals or have considered banning companies like Airbnb.

Such was the case in Barcelona, where, after years of residents’ complaints of constant noise, high lease prices and apartment shortages, the municipality announced a ban on short-term private-room rentals of under 31 days.

But the decision was overturned by the Spanish Supreme Court in January 2022.

In Amsterdam, STR listings grew from 4,500 in 2013 to 22,000 in 2017. In Lisbon’s historic Alfama district, more than 55 percent of the apartments are now STRs.

In the centre of Florence, STRs have increased by 60 percent since 2015, and in Kraków by 100 percent between 2014 and 2017.

In a statement, Airbnb said it welcomed the proposed regulations, saying it wants to be “part of the solution” to the challenges facing communities and cities.

“[This is] why we have worked with governments across the EU to help hosts share their homes, follow the rules and pay tax.

“We look forward to working with the EU Commission on the specific details of this regulation as we move forward.”

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