EU debates limits on short-term rentals as housing crisis fuels protests
The European Union is discussing new rules that would let cities restrict short-term rentals amid a housing shortage that has sparked protests and political disputes in tourist-heavy cities. The proposal has already drawn criticism from both left and right.
A shortage of affordable housing in Europe's major tourist cities has triggered public protests and sharp political disputes, pushing the issue onto the European Union's agenda. Brussels is now discussing possible restrictions on the short-term rental market.
Thousands of demonstrators took to the streets in Spanish cities after an elderly Madrid resident was evicted from the apartment where she had lived for 70 years. She said she was leaving the city because Madrid was no longer Madrid, and its residents were no longer locals but tourists on the main street. The company that bought the building raised her rent to 2,500 euros — more than her entire pension. After nearly a year of legal proceedings, the case turned into a heated political dispute.
Spanish Prime Minister Pedro Sánchez called the eviction a social tragedy that society and state institutions cannot accept. Madrid's mayor, a political rival of the prime minister, and the national government have traded blame over their failure to solve the housing shortage.
European Commission's proposal
Dan Jørgensen, the EU commissioner responsible for housing policy, said the Commission is proposing a legal framework allowing national and local governments to designate areas where the housing shortage is especially acute. Under certain criteria, authorities in those areas could regulate short-term rentals and the use of vacant homes.
Since housing policy is usually a municipal matter, Brussels' proposal is relatively limited and voluntary in nature, which has already drawn criticism. Left-wing politicians, including Green MEP Gordan Bosanac, argue the measures don't go far enough and warn they could spawn a market for expensive consultants helping towns prove they suffer from housing shortages. Right-wing politicians, meanwhile, argue such restrictions would only hinder new housing construction and question why the EU should get involved at all, calling the issue local and difficult to sell to residents of Eastern and Northern Europe.
For Estonia, the issue is not currently a pressing concern, and the country, like other member states, is still forming its position on the Commission's proposal. Approval will require support from both member states and the European Parliament.
