The European Commission defends limiting tourist rentals in areas facing a housing crisis, while MEPs call for measures to build new homes

European Commissioner for Energy and Housing, Dan Jørgensen, defended in the European Parliament a proposal that would provide authorities with a clearer legal framework for interventions concerning short-term rentals and vacant homes. Several MEPs reproached him for the Commission’s response paying too little attention to new construction, while supporters of the initiative insisted that cities need tools to keep housing available for residents.

In briefThe Commission proposes a framework for interventions in areas under pressure regarding access to housing. According to Jørgensen’s explanations, authorities would decide whether to act, and measures should be justified and proportionate; the initiative would not oblige all localities to impose restrictions.

The assessment of affected areas would use the ratio between housing prices and incomes, as well as developments in affordability pressure. Concerns arose in the debate that demonstrating these conditions could exceed the administrative capacity of small and medium-sized cities.

Critics are calling for faster permitting, investment incentives, and measures for new construction. The Commissioner replied that using existing housing can contribute to supply, but specified that the proposal does not, by itself, bring additional public funding for social or affordable housing.

Occasional rental of one’s primary residence is distinct from the activity targeted by the initiative, according to the Commissioner. Simplifying construction rules and a possible guarantee for young people, studied together with the European Investment Bank, remain separate initiatives.

The dispute in the special committee for the housing crisis in the European Union, HOUS, concerns how supply can be increased for those seeking a home. Jørgensen argued that authorities must also be able to intervene regarding existing properties, in areas where tourist use or keeping them vacant contributes to residents’ difficulties. The construction of new homes remains necessary, but, in his argument, it does not exhaust the response to the crisis.

The Commissioner explained the European intervention through internal market rules: short-term rentals are services, while real estate purchases involve the movement of capital. The initiative seeks to clarify the conditions under which national and local authorities may act, after some interventions were challenged in court. The choice of measures would remain with the competent authorities, depending on the local situation.

According to his presentation, the mechanism would allow the identification of areas where access to housing is under pressure, using the ratio between prices and incomes and the trend of worsening affordability. Such a designation would provide the basis for measures that must be justified and proportionate. Jørgensen specified that the European executive had abandoned the idea of a closed list of permitted interventions, as this risked both limiting local options and raising objections concerning subsidiarity.

Borja Giménez Larraz, from the European People’s Party, challenged the proposal’s priorities and called for efforts to focus on the structural housing shortage. He cited the simplification of procedures, taxation, financing, and public-private partnerships as areas in which supply should be stimulated. Regina Doherty raised the same issue regarding the sequence of measures: in her view, recommendations concerning construction do not address the urgency with which people need new homes.

Gaby Bischoff, from the Socialists and Democrats group, argued instead that greater legal clarity for cities is a necessary part of the response. She noted that localities have different needs and that the initiative concerning short-term rentals should not be assessed as though it were the only solution proposed for the crisis as a whole. She also called for a timetable for the other measures.

Support for the intervention was also accompanied by reservations about its implementation. Gordan Bosanac, from the Greens group, warned that small and medium-sized cities might have difficulty demonstrating pressure on the housing market and could become dependent on consultants. Jørgensen replied that he aims to reduce bureaucracy and that, under the mechanism presented, the designation of an area should not have to be notified to the Commission; he declared himself open to changes during negotiations.

The Commissioner also distinguished the situation of those who occasionally rent out their primary residence or a room. According to his explanations, this practice is not the target of the initiative on housing affordability, as it does not alter the residential supply in the same way. Authorities could continue to regulate it through other instruments, including to manage tourist pressure.

Regarding vacant homes, Jørgensen distinguished between the legitimate use of a second home and holding a property as an investment without renting it out. He presented the possibility of local intervention as a response to this second situation. He did not claim that all vacant homes are kept for speculative purposes.

At the end, the Commissioner specified the initiative’s limits: it does not create additional resources for public investment in social or affordable housing and does not immediately resolve structural problems. The Commission is separately examining rules that slow down construction and renovation, including permitting, while maintaining environmental protection. Jørgensen also confirmed that, together with the European Investment Bank, it is examining a guarantee for young people, without announcing its launch.

The exchange of views in HOUS concerns a Commission proposal, not rules already in force. Jørgensen indicated that discussions with Parliament and the Member States may modify the solutions presented, including to prevent the new framework from creating additional administrative obstacles.

https://2eu.brussels/ro/news/comisia-apara-limitarea-inchirierilor-turistice-in-zonele-cu-criza-de-locuinte-eurodeputatii-cer-masuri-pentru-constructii-noi