The European Commission has proposed an Affordable Housing Act intended to give national, regional and local authorities greater legal certainty when addressing housing affordability and availability in areas under housing pressure.
The proposal leaves decisions on whether to intervene, and which measures to adopt, with the relevant authorities. Where action is taken, authorities would have to show that homes used for short-term rentals, second homes or left empty are contributing to local housing pressures. Any measures would also have to be targeted, necessary and proportionate.
Short-term rentals face specific conditions under the proposed framework. Before introducing restrictions, authorities must demonstrate that short-term rental activity has had a significant adverse effect on housing affordability or availability for at least three years and that less restrictive measures would not be equally effective.
Competent authorities must also apply and enforce the EU Short-Term Rental Regulation. This includes requiring rentals to be registered and removing or disabling listings that fail to meet registration requirements. Where available, data collected under the Regulation can be used to support assessments of local housing pressure. Existing EU rules on short-term rentals have been in place since May 2026 and are intended to improve transparency and access to data.
The proposed Affordable Housing Act also provides a framework for measures concerning second homes and prolonged vacancy. Conditions linked to property acquisition cannot apply retroactively, appropriate transitional arrangements must be provided, and measures addressing long-term vacancy should account for justified periods of non-occupation.
The initiative comes as over 50% of city residents consider housing an immediate and urgent problem where they live. Housing pressure differs between locations, and the proposal allows responses to reflect local circumstances rather than imposing a single set of interventions across the EU.
Supply forms a separate part of the Commission's approach. The proposal includes a recommendation intended to help authorities develop plans to increase housing supply in areas where it is most needed, covering planning, permitting, renovation, the repurposing of buildings and investment. Authorities are urged to concentrate those efforts through Housing Acceleration Plans.
The combination of supply measures and a clearer framework for local intervention creates a direct consideration for investors and property owners operating across different housing markets. The Commission states that they will gain greater clarity on the EU legal framework, while individual authorities retain responsibility for deciding whether local conditions justify action.
That structure means the practical effect would depend on decisions taken at national, regional and local level. In areas where authorities choose to intervene, the proposed requirements covering evidence, proportionality, short-term rentals, second homes and vacancy would sit alongside Housing Acceleration Plans intended to increase supply through planning, permitting, renovation, repurposing and investment.
