On Wednesday, MEPs questioned Housing Commissioner Jørgensen on the EU’s plan to help member states, cities and regions to address housing shortages, unaffordability and pressure on markets.

During the meeting with European Parliament’s Special Committee on the Housing Crisis (HOUS), Commissioner Jørgensen said that housing has become a structural problem for more than half of EU citizens and requires urgent action. He noted that short-term rentals can account for up to 20% of housing in some tourist destinations and city centres, while 20–30% of homes can be vacant in some other cities.

The new Affordable Housing Act would provide local authorities with a common legal framework to address housing pressure according to their specific local needs, he said. Mayors would be able to identify areas under housing stress using common criteria, such as the ratio between incomes and housing prices, and, where duly justified, introduce measures targeting short-term rentals, second homes and vacant housing.

Various MEPs welcomed the Commission’s initiative and its recognition of the work of the Housing committee. Some saw the proposed rules on short-term rentals as an important first step towards giving local authorities the legal clarity and tools they need to respond to housing pressure.

Other MEPs expressed concern that restrictive measures on short-term rentals, second homes and vacant properties could affect property rights and economic activity, particularly in areas heavily dependent on tourism.

Several MEPs stressed that these measures alone would not solve the housing crisis and should be accompanied by action to increase housing supply, fasten permits granting and construction procedures, facilitate access to funding and incentives for people buying their first home. Some also stressed that housing should have a significant place and more prominent role in the next multiannual financial framework (MFF).

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HOUS Chair Irene Tinagli (S&D, BE) said: “In some European cities, as also highlighted by the work of the European Parliament’s Housing Committee, the increasing prevalence of short-term and tourist rentals is contributing to additional pressure on local housing markets. This can affect the availability and affordability of homes for residents and those working in the local economy.

The European Commission is proposing a common framework to provide national and local authorities with greater clarity on the tools available to address these situations. The proposal includes a number of safeguards and conditions intended to ensure that any measures are proportionate, targeted and justified by the specific circumstances of the local housing market.

The proposal will now enter the parliamentary process, providing an opportunity for the different political groups to contribute to further improving and refining the framework.”

Next steps

The proposal will now be further scrutinised by the Parliament and the Council, in order to review and adopt relevant rules.