Housing crisis 2026

Brussels to set restrictions on holiday rentals and second home purchases in high-demand areas

The proposed Affordable Housing Act aims to provide legal certainty for local authorities so that they can intervene in the market in these areas

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Key boxes for holiday flats in Malaga. (Migue Fernández)

Ana Cantero

09/09/2026 Actualizado a las 12:54h.

Story at a glance

EU Affordable Housing Act proposal: Draft rules give local authorities legal grounding to restrict short-term rentals and second-home purchases in "housing stress" zones.
Targets commercial lets: Interventions apply to frequent or large-scale holiday rentals and second homes, explicitly protecting primary home rentals from bans.
Strict stress threshold: Cities must prove housing costs meet or exceed eight times local median disposable income, with a three-year history of adverse impacts.
Temporary intervention: Restrictions must be paired with plans to expand affordable housing supply and undergo mandatory five-year reviews.

SHORT-TERM holiday let companies are set to face new restrictions, as the European Union plans to introduce measures to tackle the housing shortage in ... tourist destinations

The text of the Affordable Housing Act proposes limiting the acquisition or use of land and residential properties that are not intended for use as a main residence in areas under "housing stress".

Brussels defines "areas under housing stress" as sub-national geographical areas where an imbalance between housing supply and demand creates observable pressures on the property market.

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The aim of the legislation is to provide local authorities with legal certainty so that they can intervene in the property market in these areas.

"The Union is facing a housing affordability crisis that weakens social cohesion and threatens the overall competitiveness of the Union. This crisis affects a growing number of households, with a rising number of people facing difficulties in securing quality housing at an affordable price," the draft states.

Furthermore, the average house price and the median disposable income of the population in that area must reach or exceed the threshold of eight, with a gradual increase in that ratio over the last decade and the certainty that the pressure is unlikely to ease over the next three years, following an analysis of three key factors: population dynamics, housing supply and housing demand.

Holiday accommodation

The draft bans any restrictions on the short-term letting of the host's main residence. Restrictions will only apply to properties that are not the host's main residence and concern activities carried out on a large scale, frequently or for commercial purposes.

Furthermore, the authorities must demonstrate, using data, that holiday lettings have had a direct adverse effect on the affordability or availability of housing in that area for at least the previous three years.

This final requirement will also apply when restricting the purchase of second homes for purposes other than use as a main residence in areas experiencing housing shortages.

The regulation highlights that these restrictions are temporary measures and must be accompanied by strategies to increase the supply of affordable and social housing. They will undergo a new review every five years.

EU member states and the European Parliament will debate the proposal over the coming months.

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