The Straits Times World News
· collected 2026-09-04 · by The Straits Times
The European Commission plans to unveil a legal proposal next week to help cities restrict short-term tourist rentals like Airbnb, which have been linked to rising house prices in areas such as Florence and Barcelona. According to the Affordable Housing Act, authorities would be allowed to limit short-term rentals in areas deemed "under housing stress", where house prices are significantly higher than incomes. The legislation does not affect landlords renting their primary residences for short periods of time. Housing affordability has become a growing issue across the 27-nation EU bloc, with property prices increasing by 60% and rents rising by 20% over the past decade.
Written by the local model on 2026-09-04,
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Story summary
The European Commission is set to unveil next week a legal proposal that will help European cities curb short-term rentals such as Airbnb, in an effort to address rising house prices. This move comes after local authorities in tourist hotspots like Florence and Barcelona have been cracking down on these types of rentals, which have been driving up costs and pricing out residents. However, rental providers and tourism operators have often challenged these curbs in court, resulting in legal uncertainty. The Commission's Affordable Housing Act aims to clarify when authorities can restrict short-term rentals without violating EU single market rules. Under the proposed plan, cities would be allowed to limit access to or provision of short-term rentals in areas where there is a shortage of housing, known as "housing stress". This would apply to both rental and property purchases for short-term letting. The proposal is expected to be unveiled on September 4.
Written for “EU Crackdown on Short Lets” on 2026-09-05,
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Leaning score -0.35 for article 4095 (high confidence, 1 verified quote) · logged 2026-09-04
EU to help cities clamp down on tourist rentals
AI generated
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cities → help → rentals
The EU is set to lay out rules helping European cities to curb short-term rentals such as Airbnb in a bid to tackle rising house prices, according to plans seen by AFP on Sept 4.
uncertain
cities → set → Sept
The European Commission is expected to unveil next week a legal proposal setting out the conditions under which authorities can restrict the provision of short-term tourist lets.
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authorities → expect → lets
Such rentals have increasingly come into the crosshairs of local authorities in tourist hotspots such as Florence and Barcelona, as residents complain about being priced out by visitors.
But curbs have often been followed by court challenges from rental providers and tourism operators, resulting in legal uncertainty.
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curbs → come → uncertainty
The commission’s Affordable Housing Act aims to clarify when authorities can take action without falling foul of EU single market rules.
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authorities → aim → rules
Cities, regions and other relevant authorities would be allowed to restrict access to, or the provision of short-term rentals as well as the purchase of property for short-term letting in areas “under housing stress”, according a draft seen by AFP.
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Cities → allow → AFP
The document lays out a series of parameters that need to be met for an area to be defined as under stress, such as the difference between house prices and incomes there.
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area → lay → prices
The legislation will not affect landlords that rent out their own primary residence for short periods of time.
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that → affect → time
Housing affordability has become a growing issue across the 27-nation bloc in recent years.
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affordability → become → years
Property prices have surged by 60 per cent, while rents have climbed by 20 per cent over the past decade, leaving millions struggling to find a home they can afford, according to Brussels.
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they → surge → Brussels
The EU says this is mainly driven by insufficient housing supply but short-term lets add extra pressure in certain areas, further reducing supply and driving up prices – something rental providers dispute.
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providers → say → prices
“Europe’s housing crisis needs structural solutions, and the implementation of this Act should focus on increasing the supply of homes,” said an Airbnb spokesperson.
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spokesperson → need → homes
