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 thousand-and-one 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 bodies 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 text to which ARA has had access, the new regulation proposes creating the figure of the "residential stress" zone on a European scale, which would be the equivalent of the "strained 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.

Furthermore, the law provides for a principle of "proportionality". The measure that is decided to be applied 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 will not be able to discriminate against any EU buyer on the grounds of nationality.

The clash between the right to housing and the free market

The regulation does not provide for any restrictions for primary residences, as it considers that this modality does not remove housing from the regular residential market. Nor does it 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 competence in housing matters and, in the same document, acknowledges that "housing affordability in itself is not the direct problem that this initiative addresses," but rather establishing a common methodology to reduce legal uncertainty.

The Barcelona City Council has celebrated the Brussels draft. The first deputy mayor, Laia Bonet, considered the text an "endorsement" of the municipal government's policies and the decision "that there will be no more tourist apartments from 2028 onwards." An opinion diametrically opposed to the one held by Apartur. The association for tourist apartments in Barcelona defended in a statement that the European Commission's proposal questions the elimination of tourist apartments and sets "very strict conditions" to justify "any restriction" on short-term rentals.

However, Brussels acknowledges that restricting speculative buying and tourist rentals is not enough to solve 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 regard, 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 permit procedures are key factors where the action of competent authorities could help to better align the supply and demand for housing," it reads.

The regulation has been promoted by the European Commission Vice-President for Clean 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 coming 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 "nonsense." In contrast, Green party sources interpret that the criteria for accessing the designation of a stressed zone are "very cumbersome legal obstacles" that block local action.