EU to Help Tourism Hot Spots Crack Down on Holiday Rentals

9/1/2026

The European Commission is preparing an Affordable Housing Act to give cities clearer legal authority to restrict short-term rentals in areas facing housing shortages. Holiday lets represent only 1.2% of EU homes overall but reach 20% in some tourist hot spots, including Sorrento, Italy, and Dubrovnik, Croatia. Cities such as Florence, Paris, Amsterdam, and Barcelona have imposed licensing, night limits, or phase-out plans, but many face legal challenges over EU service rules. The legislation aims to clarify when restrictions are proportionate, reducing uncertainty for local governments. While research links STRs to higher housing costs, tourism groups argue that broader housing shortages are the primary problem.

Financial Times (08/30/26) Paola Tamma

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