Short-term lettings: European restrictions are on the way – a halt to lettings and sales
The text of the proposal that Brussels is set to present next week is now finalised
Local authorities wishing to restrict short-term lettings will be able to do so within the framework of European regulations. They will be able to stipulate that, in certain areas under pressure, tourist lettings are prohibited. Or they may even set limits on the letting of properties not intended for residential use.
This is the core of the European housing plan that the European Commission, through its Commissioner for Housing, Dan Jorgensen, will present next week, based on the draft documents currently circulating, which will, in any case, then have to be submitted to the Council and the European Parliament for scrutiny. Essentially, the European regulation sets out criteria for identifying areas experiencing housing stress. In those areas, national, regional and local authorities will be able to take action, including imposing very strict restrictions.
The regulation forms part of an already highly complex framework of rules. It complements the regulation on data reporting, which has been in force for a few months. And it fits into the broader European housing plan, of which it forms part. The key principle is that, in areas experiencing housing pressure, national and local authorities must be permitted to adopt measures to limit the practice of short-term lettings.
These areas are identified on the basis of a number of parameters. Among these parameters will be the ratio of disposable income to the average cost of property transactions: this must not exceed eight. Furthermore, it will be necessary to assess whether housing stress in the area is set to decrease over the next three years, taking into account the outlook for purchase demand and population trends. The boundaries of the area experiencing housing stress must be precisely defined and kept as limited as possible.
In areas experiencing housing pressure, the two key measures may then be implemented. The first provides for the possibility of restricting access to short-term lettings in residential properties: in effect, it will be possible to impose bans on tourist lettings in the most crowded areas. This is a measure that has already been introduced in several Italian cities but which has always faced an uncertain regulatory framework. This regulation would provide it with full legal cover.
