New EU rules to help local authorities tackle housing crisis

The European Commission proposed the Affordable Housing Act to help Member States and cities address housing affordability and availability. It gives public authorities legal certainty to act within EU law, requiring measures such as short-term rental restrictions to be evidence-based, necessary and proportionate. Authorities must show short-term rental activity has had a significant adverse effect on affordability or availability for at least three years and that less restrictive measures would not be equally effective. The Act also covers second homes and prolonged vacancy, and is accompanied by a Recommendation to increase housing supply.