Today the Socialists and Democrats in the European Parliament are drawing a line in the sand on short-term rentals, with a new study showing that it is possible to regulate this sector across the EU in a balanced manner. The legislative proposal aims to fill the regulatory gap in an industry that is having real-world impacts, including housing shortages, rising rents, resident displacement, online discrimination, and a lack of health and safety measures for consumers.
The study does not villainise short-term rentals, but instead it values their role in Europe’s tourism and local economy. But with housing markets under strain and high-tourism areas reaching saturation point, it is time for rules at the EU level that make sense. The proposals seek to bring legal clarity and proportionate safeguards, especially in cities facing over-tourism or housing shortages. It is about smart regulation – not prohibition – to align rentals with public interest goals like affordable housing and liveable cities.
At a moment when European cities are slapping limits on short-term stays, with the S&D Group study we want to send out a response providing legal clarity and certainty to cities, and empower them in managing the current crisis.
Gaby Bischoff, S&D vice-president for Sustainable Economy and Social Europe, said:
“In 2023 alone, 719 million nights were booked via short-term rental platforms in the EU, with, in many cities, devastating impacts on the supply of long-term rentals, housing shortages and accelerating gentrification. In Florence, 20% of central flats are on Airbnb. It is time for the EU to act!
“The European Union is currently facing a pressing housing crisis. Many low-to-medium income earners are coping with affordability challenges, exacerbated by strong increases in housing costs (by 48% on average in the EU between 2015 and 2023). Too many Europeans are facing evictions or even risk homelessness. This crisis is deeply rooted in growing socio-economic inequality, but also due to unsustainable housing systems that prioritise profit over people.
“With this legislative proposal, we are presenting a viable and balanced option and call on the Commission to take it up and advance towards regulating the short-term rental market, as it is clear that something needs to be done at the European level. By no means does our group advocate for banning short-term rentals platforms.
"According to our study, member states could impose measures such as nightcaps, authorisation schemes and zoning restrictions in areas with significant housing pressure. It also includes different rules for non-professional and professional hosts to safeguard genuine peer-to-peer activity while tackling the market distortions caused by large-scale operators."
Laura Ballarin, S&D MEP and coordinator on the committee on internal market and consumer protection, said:
"Short-term rentals were first conceived in the framework of a collaborative economy and have brought many advantages, mostly for tourists and individual hosts who earn additional revenue. However, short-term rentals have grown exponentially, bringing with them a series of negative externalities for consumers, residents and small business.
"Today, short-term rentals have detached themselves from their original meaning and have mostly become a business for the benefit of large multi-property owners. Figures speak for themselves: commercial operators now dominate in cities like Lisbon, Porto, and Barcelona, where over 70% of listings are managed by multi-property hosts.
"It is evident that the current EU legal framework (especially the Services Directive, the Digital Services Act and the regulation on STR data collection) do not fully cover the challenges that local authorities are facing day after day. They are calling for action at European level.
"From the S&D Group, we want to contribute with concrete proposals to tackle this urgent housing crisis and we propose clear answers and legal certainty to the local authorities who want to further regulate the short-term accommodation rentals. Because social cohesion is at stake and Europe needs to be part of the solution of the current housing emergency."
