European cities are calling for stronger local powers to respond to housing shortages and the effects of short-term rentals as the European Commission moves forward with its Affordable Housing Plan.
City leaders have welcomed the EU’s focus on increasing housing supply, improving affordability and addressing areas experiencing housing stress. However, Eurocities says the proposed framework should give local authorities enough flexibility to respond to conditions in their own housing markets.
The debate comes as housing affordability has become a growing concern across European cities, with pressure on rents, limited supply and competition for residential properties affecting both residents and local authorities.
Cities want greater control over local housing pressures
Eurocities argues that housing problems vary significantly between cities and that local authorities need the ability to identify areas where housing markets are under particular pressure.
The organisation is calling for cities to have a stronger role in deciding when housing conditions justify additional measures, rather than leaving those decisions solely to regional or national authorities.
Jaume Collboni, mayor of Barcelona, welcomed the European Commission’s recognition of housing stress as part of the policy framework.
However, city leaders are concerned that some provisions could make it harder for local authorities to respond to specific conditions in their own communities.
Short-term rentals remain a major concern
One of the biggest issues raised by Eurocities is the impact of short-term tourist accommodation on residential housing.
City authorities argue that the growth of short-term rentals can reduce the supply of homes available to people who live and work in cities, particularly in neighbourhoods where demand for accommodation is already high.
The concerns extend beyond housing costs. Eurocities says short-term rentals can also affect local services, infrastructure and the character of residential communities.
The European Commission itself recognises that public authorities across the EU are already introducing measures covering short-term rentals, secondary homes and vacant properties.
Cities seek stronger powers over short-term rentals
Eurocities wants the final legislation to recognise protecting the liveability of cities and residential neighbourhoods as legitimate reasons for regulating short-term rentals.
It also wants local authorities to retain the ability to regulate short-term rentals in primary residences where local housing conditions justify intervention.
Another demand is for cities to have a clearer role in identifying housing markets that are under stress and deciding when additional measures are necessary.
The organisation is also calling for stronger implementation and enforcement of existing obligations on short-term rental platforms under EU law.
Mathias De Clercq, mayor of Ghent and president of Eurocities, said cities need sufficient flexibility to respond to the local consequences of short-term rentals.
Vienna welcomes EU action on affordable housing
Michael Ludwig, mayor of Vienna, described the Commission’s initiative as an important step towards greater European involvement in social and affordable housing.
Vienna has long used a large social and affordable housing sector as part of its housing model, making the city an important voice in the European debate.
Ludwig said the EU framework should give cities greater legal certainty when introducing restrictions on short-term rentals.
The issue is particularly relevant as European cities attempt to balance tourism, investment and the need to maintain homes for permanent residents.
Housing affordability moves higher up the EU agenda
The Commission’s Affordable Housing Plan represents a wider shift towards greater European attention on housing affordability.
Housing policy remains primarily the responsibility of national and local governments, but the EU can influence the sector through funding, regulation and policies affecting investment, construction and the wider housing market.
The Commission’s housing work acknowledges the pressures facing cities and points to measures already being used by public authorities to regulate short-term rentals and other factors affecting housing supply.
For cities, the central issue is whether the European framework gives them enough room to respond to local circumstances.
Final legislation will determine cities’ room to act
Eurocities plans to continue engaging with the European Parliament, EU member states and the European Commission as the proposal progresses.
The organisation wants the final framework to protect the ability of cities to address housing affordability while also preserving residential neighbourhoods and managing the effects of short-term tourism.
For European cities facing rising housing costs and limited supply, the outcome could influence how much control local authorities have over short-term rentals and other measures designed to protect residential housing.
The debate now moves to the next stage of the EU legislative process, where city leaders will seek changes that they believe will give local authorities greater flexibility to respond to housing pressures on the ground.
