Regulate Short-Term Rentals

What is the problem?

Short-term rental platforms have changed urban housing markets, often turning residential homes into tourist accommodation. While they generate income, they also reduce long-term rental availability, inflate prices, and displace residents from central areas. Most cities lack access to reliable data or the legal power to enforce limits effectively, leading to regulatory fragmentation and social tension.

What should be done?

The EU should introduce clear, binding standards requiring platforms to share rental data with public authorities and comply with local caps on listings. National governments should classify hosts based on activity scale - distinguishing between casual and professional operators - and set fair taxation rules. Municipalities must retain the right to regulate the number of short-term rentals in saturated areas. Transparency obligations and digital registration systems should ensure compliance and protect both residents and legitimate hosts.

Who should act?

 The European Commission and the European Parliament should legislate a coherent framework for short-term rental regulation under the Digital Services Act. National ministries should transpose these rules, and local authorities should oversee enforcement through housing and tourism departments.

What impact will it have?

This reform would restore housing availability, stabilize rent levels, and protect the social character of neighbourhoods. It balances tourism with residents’ rights, promotes fair competition, and ensures that digital platforms contribute responsibly to sustainable urban development.