The European Union has taken a significant step to address the housing crisis by introducing new regulations on short-term rentals. The Affordable Housing Act presented by the European Commission, aims to provide local authorities with tools to manage the housing market more effectively. This move has ignited a heated debate among politicians, property owners, and market stakeholders across Europe.
The new regulations, set to be presented tomorrow in Brussels, allow local authorities to designate areas under housing pressure where home prices exceed eight times the average annual disposable income per capita. In these areas, authorities can impose limits on short-term rentals without violating internal market rules. The European Commission emphasizes that the decision to intervene and the measures to adopt remain within the competence of national, regional, and local authorities.
The Political Landscape in Italy
In Italy, the new regulations have sparked a lively political debate. The center-right coalition, including FdI, Forza Italia, and the Lega, has strongly opposed the measures, arguing that they infringe on property rights and national competencies. The Lega has been particularly vocal, stating, “Hands off our homes, the right to property remains inviolable.”
On the other hand, the center-left Democratic Party (Pd) has welcomed the proposal. The mayor of Florence, Dario Nardella, has urged the government to listen to mayors and strengthen the regulations to combat speculative rent. The Five Star Movement (M5s) has criticized the text as disappointing and ineffective, fearing that the limits on short-term rentals may remain merely theoretical.
Impact on the Rental Market
The new regulations are already influencing the rental market, particularly in tourist-heavy cities like Florence. According to data from Idealista, Florence is the second most expensive city in Italy for rentals after Milan, with average prices of 21.7 euros per square meter in August. However, there has been a 13.8% annual decrease in prices, partly due to an increase in housing supply and a shift away from short-term rentals.
The tightening of short-term rental regulations has led some property owners to explore other rental options, such as student housing or controlled rent agreements. Despite this shift, demand continues to outstrip supply in the most sought-after areas, keeping rental prices high. Arrigo Brandini, president of Fimaa Confcommercio Firenze, notes that the market is currently in a state of stasis, with property owners uncertain about how to proceed.
Reactions from Market Stakeholders
Major online platforms like and Airbnb have also weighed in on the new regulations. has expressed concerns that the proposal could undermine the European single market and set a worrying precedent. The company has pledged to work with co-legislators to ensure that the proposal upholds the principles of subsidiarity, non-discrimination, and proportionality.
Airbnb has taken a more cautious stance, acknowledging the need for structural solutions to Europe’s housing crisis. The company has committed to working with member states to ensure that the measures adopted are proportionate and based on real data, protecting hosts, guests, and communities that rely on short-term rentals.
The Italian Association of Hospitality Managers (AIGO) has raised concerns about the effectiveness of limiting short-term rentals in increasing housing availability. Claudio Cuomo, president of AIGO, points out that there are still nine million unrented homes in Italy, highlighting the need for a more comprehensive approach to addressing the housing shortage.
Confedilizia, representing homeowners, has launched an appeal to politicians to prevent the approval of a regulation that they believe would represent an unacceptable invasion of property rights. Fimaa Italia has also criticized the draft legislation, arguing that it would disproportionately affect small property owners who rely on short-term rentals for income.
The Union of Small Property Owners (UPPI) has proposed alternative measures to encourage the return of homes to the residential rental market. These measures include partial tax exemptions for re-letting vacant properties, reducing delays in property release procedures, stabilizing tax deductions for renovations, and facilitating the regularization of building irregularities that prevent properties from being rented out.
