EU sets out framework for housing measures
The European Commission has proposed new legislation that it says is aimed at helping local authorities across the EU to tackle housing crises.
The EU body says that the proposals will give local authorities greater legal certainty about what measures they can take, within EU law, on issues such as short-term rentals, second homes, or prolonged vacancy.
The commission notes that, in some cities and popular tourist destinations, where pressure on housing is strongest, the increasing use of housing for purposes other than primary residence can affect local availability and affordability.
It adds that measures taken by some member states to ease such pressures have faced legal challenges about their compatibility with EU law.
‘Fairness’
The EU body says that the proposed Affordable Housing Act “brings clarity and predictability, and addresses the request of member states and municipalities for greater legal certainty on how they can act in the context of the EU's single market”.
Commission president Ursula von der Leyen said that the measures were about “fairness”.
Commissioner Teresa Ribera said that, while houses and apartments had a legitimate economic value, the EU was facing “a terrible crisis” that prevented many citizens from accessing housing.
“When the market fails to deliver something as fundamental as an affordable home, public authorities have a responsibility to act,” she added.
‘Housing stress’
The act sets out a common framework for assessing housing-related measures affecting the single market, but leaves the decision on whether to act, and which measures to adopt, to the national, regional, or local authorities.
The rules are designed to help local authorities identify ‘areas under housing stress’ using a common methodology.
Where they choose to restrict the use of housing – for instance, for short-term rentals or vacant homes – they must show that this contributes to local housing pressures and ensure that any measures are targeted, necessary, and proportionate.
Targeted measures
On short-term rentals, such as those aimed at platforms such as Airbnb, the act says that any measure must be targeted at activities that reduce the housing stock available for long-term use.
Before introducing restrictions, authorities must also show 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.
The act also provides a framework for action on second homes or vacancy, including:
- Conditions linked to acquisition cannot apply retroactively,
- “Appropriate” transitional arrangements must be provided, and
- Measures addressing long-term vacancy should take into account “justified periods of non-occupation”.
The will now go to the European Parliament and the EU Council for consideration.