Brussels proposes limiting tourist rentals and the purchase of second homes

BrusselsThe European Commission is preparing a regulatory framework to allow municipalities to restrict tourist rentals and the purchase of second homes, with the aim of combating the housing access crisis affecting the continent. Faced with the myriad of recipes applied by member states to curb what is already the main concern of the community's citizens, Brussels will present the affordable housing law on Wednesday. The regulation will set the conditions under which local authorities will be able to apply these restrictions and will offer a common methodology to provide the measures with legal certainty.

The conditions for being able to apply the limitation on purchases and tourist rentals are numerous. According to the draft of the text to which ARA has had access, the new regulation proposes creating at a European level the figure of the "residential stress" zone, which would be the equivalent of the "tense zones" in Catalonia.

For a municipality to be included in this category, three conditions must be met simultaneously. The first is that the average purchase price of a home in that area must be equivalent to or greater than eight times the annual income of the average family, in order to determine that the cost of housing is inaccessible to the economic capacity of families. The second is that this ratio of impact must have increased continuously over the last 10 years. And the third is that the administration must demonstrate that there are indications that the real estate pressure will not decrease in the next three years.

In addition, the law provides for a principle of "proportionality". The measure decided upon must be the least restrictive possible for the internal market, and softer options such as quantitative limits or clauses to protect legal situations prior to the European rule will need to be assessed. Municipalities will be obliged to review the limitations at least every five years; and purchase limitations cannot discriminate against any EU buyer on grounds of nationality.

The clash between the right to housing and the free market

The regulation does not provide for any restriction on primary residences, as it considers that this modality does not remove housing from the regular residential market. It also does not intend for these limitations to apply to the entire community territory, but rather to provide legal coverage for those cities or governments that do wish to intervene in the housing market. In fact, the European Union does not have jurisdiction in matters of housing and, in the same document, acknowledges that "housing affordability itself is not the direct problem that this initiative addresses," but rather establishing a common methodology to reduce legal uncertainty.

However, Brussels recognizes that restricting speculative buying and tourist rentals is not enough to resolve the serious housing crisis. Given that the restrictions only offer short-term relief, the text argues that it is essential to increase the housing stock, especially social and affordable housing. In this sense, it urges administrations to accompany the limitations with long-term measures such as simplifying licenses or rehabilitating the stock. "Building codes, zoning regulations, planning, and permitting procedures are key factors where the action of competent authorities could help to better align housing supply and demand," it reads.

The regulation has been promoted by the European Commission Vice-President for Clean, Just and Competitive Transition, the Spanish socialist Teresa Ribera, and the European Commissioner for Housing, the Danish socialist Dan Jorgesen, who will be in charge of making the proposal public on Wednesday. Before entering into force, the text will have to receive the approval of the EU Council—where member states are represented—and the European Parliament.

The legislative path of the regulation will not be smooth. Popular Party sources consider that, while the regulation regarding tourist apartments has potential, the attempt to limit the purchase of non-habitual housing is a "nonsense." In contrast, Green party sources interpret that the criteria to access the designation of a tensioned zone are "very cumbersome legal obstacles" that block local action.