The European Commission will table EU-wide rules on short-term rentals as part of a forthcoming affordable housing plan, in a bid to address what it describes as a “social crisis” of rising housing costs across the bloc.
In an interview published today, Dan Jørgensen, the Commission’s housing lead, said platforms offering tourist lets had become “a huge problem in many cities” and signalled that Brussels would legislate where there is clear EU competence. The measures are to be folded into the EU’s first affordable housing strategy, now due in December, having been brought forward from 2026.
Housing policy has largely remained a national prerogative. Jørgensen argued, however, that specific elements require a European framework, citing the cross-border nature of platforms and capital flows. He linked the affordability squeeze to broader political risks, warning that failure to act could benefit anti-EU parties.
The plan will cover tenants’ rights, the role of state aid in supporting affordable supply, and the “financialisation” of housing. While detailed proposals have not yet been published, the Commission is assessing member-state practices such as inclusionary requirements on developers. Jørgensen also indicated the EU could adjust state-aid rules to facilitate subsidies or tax incentives for affordable housing providers.
The policy push comes against persistent cost pressures. Eurostat data show that between 2010 and the second quarter of 2024, EU house prices rose by over 55% and rents by nearly 27%; an earlier series for 2010–2023 showed increases of roughly 46% and 21%, respectively. The broad trend has been steady rent growth and faster house-price inflation, despite a modest price correction in 2023.
Affordability pressures are visible in the housing cost overburden rate—the share of people spending 40% or more of disposable income on housing. Eurostat’s indicators and recent reporting point to an EU-wide figure close to one in ten people, with markedly higher rates in Greece and elevated levels in Denmark and Germany. Urban households face the sharpest strain.
Short-term tourist lets are a focal point. Cities from Lisbon to Barcelona have linked the spread of holiday rentals to reduced long-term supply and neighbourhood change. The Commission has previously supported data-sharing obligations for platforms; the forthcoming package is expected to go further, aiming to harmonise definitions and reporting to help local authorities enforce caps and zoning. Jørgensen did not name specific companies or spell out draft articles, but said EU-level rules were needed.
Some member states are testing more radical measures that could collide with EU law. In Spain, the government has floated a 100% transfer-tax levy on most residential purchases by non-EU residents and, at times, even a ban on such acquisitions—proposals that would require parliamentary approval and face legal scrutiny. Industry analysis notes significant constitutional and single-market questions around a punitive tax, and any outright ban would be contentious.
Budgetary levers are also under discussion. Socialist MEPs have argued for a large EU-level envelope—on the order of €300bn—in grants and loans for housing, alongside fiscal-rule changes to support national investment. The Commission has not endorsed a headline figure; Jørgensen acknowledged that “very, very big numbers” would be required in some cases to crowd in private capital.
Politically, the move reflects shifting priorities in Brussels. President Ursula von der Leyen created the housing brief in 2024 as part of coalition building for her second term. Jørgensen’s mandate now spans energy and housing, with a remit to support member states in unlocking supply and investment. The Commission has already topped up EU funding available for housing in a mid-term budget review.
The electoral backdrop is clear. Post-election surveys conducted for the European Parliament found the cost of living to be the dominant factor shaping voter choices in 2024. That pressure has fed into housing debates in capitals and the European Parliament, where a first EU housing summit has been trailed to consolidate national views ahead of the Commission’s December package.
What to watch next:
Scope of the short-term rental rules. Key questions include whether the Commission will standardise host registration and data-sharing, set EU-level thresholds for nights let, or simply reinforce local enforcement tools.
State-aid flexibility. Any easing would need to fit within competition rules while enabling longer-term, below-market rental models to scale.
Interaction with national measures. Spain’s proposals on non-EU buyers, and similar ideas elsewhere, may test free-movement of capital and non-discrimination principles if they proceed.
EU leaders are due to discuss housing at a summit next week. That meeting will give the first indication of how far governments are willing to go in granting Brussels a larger role—and what mix of regulation, funding and planning reform they will back—before the Commission unveils its draft in December.
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