Draft Affordable Housing Act, obtained by Euractiv, lets cities limit activity in areas of housing stress

The EU executive is preparing to give cities a new legal tool to crack down on short-term rentals, but only if local administrations can prove that holiday lets are worsening housing pressures.

The proposal would allow authorities to restrict the purchase or use of residential property and land for non-primary residence purposes, according to a draft obtained by Euractiv

The Affordable Housing Act would introduce a methodology for determining when housing pressures justify restrictions that might otherwise conflict with single-market rules.

The new rules do not hand Brussels control of housing policy, but establish common rules for cities and governments that want to intervene on holiday lets.