The European Commission Affordable Housing Plan, announced on 17 December 2025, has included proposals to regulate short-term rental platforms such as Airbnb and Booking.com.
The legislation enables local authorities to take measures to control short-term holiday rentals in areas of housing stress. Measures include caps on the number of nights a home can be rented out for short-term stays, seasonal restrictions and pauses on new licences. Draft legislation will be published by the end of 2026.
The initiative pairs scrutiny of short-term rentals with a review of state-aid rules to direct public funding towards housing projects and simplified measures apply to planning, permitting, construction and renovation. Under the legislation, cities and member states will not face an obligation to clamp down on short-term rentals.
Short-term rentals grew 93pc from 2018 to 2024 and politicians have seen this growth as taking rental properties out of the long term market. They say short-stay platforms have reduced the availability of affordable housing for residents by 70pc between 2019 and 2024. In tourist destinations, short-term rentals account for up to 20pc of housing stock.
Short-term rentals through platforms have been the focus of attention as part of measures to curb impacts on long-term housing availability. Authorities in areas of housing stress, including throughout Ireland, have moved to limit short-term lets through legislation and ministerial order.
The plan proposes a regulation to harmonise standards and housing definitions across the EU. The regulation curbs competition with traditional accommodation providers such as hotels. The plan also frees public funds for home construction and reduces procedures for building projects. European public banks pledge €375bn for social housing by 2029. The document asserts that housing is a fundamental right of al citizens.
Máire Ní Murchú of the Irish Self Catering Federation shared: The European Housing Advisory Board was established in June 2025 with a one-year mandate to assist the European Commission in producing an Affordable Housing Plan. The Board is made up of fifteen volunteers with various backgrounds in housing research, education, finance, and public provision. STR industry stakeholders, who applied to join the HAB were not accepted, which results in the fact that the recommendations are missing this crucial perspective.
