A newly released study has prompted calls for the regulation of the short-term rental sector across the European Union, aiming to establish balanced frameworks in light of significant challenges such as housing shortages, rising rents, and resident displacement.

The legislative proposal seeks to bridge a regulatory gap in an industry that has been associated with various socio-economic impacts, including discrimination in online booking platforms and inadequate health and safety measures for consumers.

The study emphasizes that it does not attempt to vilify short-term rentals but rather recognizes their contributions to the tourism sector and local economies across Europe.

However, the growing pressure on housing markets, particularly in popular tourist destinations, has led some Members of the European Parliament (MEPs) to advocate for formal rules at the EU level.

The proposals outlined in the study aim to provide legal clarity and practical safeguards for cities grappling with over-tourism or significant housing shortages.

Gaby Bischoff, Vice-President of the S&D Group for Sustainable Economy and Social Europe, noted that short-term rental platforms recorded 719 million nights booked in the EU in 2023 alone.

This surge in short-term rentals is said to have devastating effects on the availability of long-term rental units in various cities.

In Florence, for instance, it is reported that 20% of central flats are listed on platforms like Airbnb.

Bischoff highlighted the pressing housing crisis in the EU, where average housing costs have risen by 48% between 2015 and 2023, posing affordability challenges, especially for low-to-medium income earners.

The S&D Group's study highlights a concerning trend, indicating that widespread evictions and homelessness are among the harsh realities faced by many European citizens.

The crisis is linked to increasing socio-economic disparities and unsustainable housing systems prioritizing profit over housing access.

The proposed legislation aims to provide a balanced response, inviting the European Commission to consider regulation to effectively address short-term rental markets.

Existing EU regulations currently show limited advocacy for the complete prohibition of short-term rental platforms.

The study suggests that member states could adopt specific measures, such as night caps, authorization requirements, and zoning regulations in areas facing substantial housing pressures.

It also proposes differentiated regulations for professional and non-professional hosts to preserve genuine peer-to-peer rental activity while mitigating the market disruptions caused by large-scale operators.

Laura Ballarin, an S&D MEP and coordinator on the Committee for Internal Market and Consumer Protection, remarked that while short-term rentals emerged as part of a collaborative economy, they have seen tremendous growth and have now introduced various externalities affecting consumers, local communities, and small businesses.

In a separate but related context, Ghent has reported advancements in combating poverty, having successfully assisted nearly 700 individuals in securing permanent housing.

Despite these efforts, the city is still confronted with significant challenges, as approximately 31,000 individuals live in poverty, and nearly 2,500 are presently homeless.

Alderman Astrid De Brucker noted the positive developments over recent years, but emphasized the potential negative ramifications of impending funding cuts, which could hinder ongoing support for vulnerable populations.

The local government is apprehensive about a decision by Minister Anneleen Van Bossuyt to freeze €11 million in vital financial support, regularly instrumental in facilitating assistance for citizens with minimum incomes, particularly regarding essential living expenses such as housing and utilities.

City officials have expressed concern that this freeze could exacerbate the challenges faced by the most vulnerable members of society.

With around 35,000 individuals relying on Ghent for essential financial support and services, authorities warn that an increase in demand for assistance is likely without additional funding, particularly as new national regulations regarding unemployment benefits are anticipated to further strain local resources.