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Nomads & Communities
22OCT

EU Act ties short-let caps to registers

3 min read
16:46UTC

The European Commission's draft Affordable Housing Act lets a city cap short lets only if it already runs a working host register. Measures adopted before the Act takes effect escape its tests.

SocietyAssessed
Key takeaway

Under the draft Act, a city needs a working host register before it may cap short lets.

On 9 September the European Commission proposed the European Affordable Housing Act (COM(2026) 599), a Regulation setting when authorities may restrict short lets on housing grounds⁠1. An area qualifies only where an average dwelling costs at least eight years of disposable income per head. A restriction also needs evidence that short lets harmed housing for three years beforehand, and it lapses after five years unless renewed.

Article 10(1)(e) carries the condition that matters most for Spain. The authority must already apply and enforce registration under EU Regulation 2024/1028, the short-term rental data rule that requires host registration numbers and platform data sharing. On the draft's own wording, a city without a working register cannot use the Act's cap at all. Spanish cities would have to qualify through regional registers, because the Tribunal Supremo struck down the national number in May. Article 14 exempts every measure adopted before the Act enters into force, so a city that legislates first escapes the income test and the sunset clause.

Mayor Jaume Collboni said on 9 September that the proposal backs his plan to let Barcelona's roughly 10,000 tourist-flat licences lapse in 2028⁠2. The text contains no annual night cap and no seasonal rule. EU Travel Tech, the European Holiday Home Association and the European arm of the Computer & Communications Industry Association said it lacked independent oversight and reliable data⁠3.

Eurostat's release on 2 October sizes the market the Act would govern: 258.8m platform nights across the EU in April to June, up 5.3% against 17.6% a year earlier⁠4. Nights fell in Austria, Cyprus and Hungary. The Cyprus figure fits the 10 to 15% fall in short-let occupancy and prices that the Self-Service Tourist Accommodation Association reported in July. Eurostat attributes none of the slowdown to regulation, and Italy and Greece still grew about 8%.

Deep Analysis

In plain English

The European Commission is the EU's executive arm. It has proposed a law about when a city may limit short-term lets such as Airbnb flats. A city could only act where housing is very expensive compared with local incomes, and only with evidence that short lets had hurt housing for three years. Any limit would end after five years unless the city renewed it. The European Parliament and the member states have not yet voted on the proposal. The European Parliament and the member states must agree first.

Deep Analysis
Root Causes

The draft is a Regulation proposed under procedure 2026/0268 (COD), which means Parliament and the Council must both agree before it binds anyone. the Commission chose conditions that a court can test: a ratio, a trend and a forecast, each with a dated data source.

The design answers a legal problem. A city that restricts short lets limits property rights and the freedom to provide services, so the Commission wrote evidence thresholds into the text. A host's primary residence is exempt under Article 5(2), which keeps the Act away from home-sharing and aims it at investor-owned flats.

The registration condition ties the new law to the 2024 data rule. Cities that built registers early gain; cities that did not must build first.

What could happen next?
  • Precedent

    Registration quality becomes a legal gate for any new cap, so cities will invest in registers before they legislate.

    Medium term · Assessed
  • Opportunity

    A city that adopts its measure before the Act enters into force escapes the income test and the sunset under Article 14.

    Short term · Assessed
  • Risk

    Trade groups' objection on oversight and data could shape Parliament's amendments before the text is final.

    Medium term · Suggested
First Reported In

Update #14 · Spain's Congress sinks its rental decrees

Eurostat· 3 Oct 2026
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Causes and effects
This Event
EU Act ties short-let caps to registers
A city without an enforced registration system could not use the Act's short-let restrictions, which puts Spain's fragmented registers in question.
Different Perspectives
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Peter Burke, Ireland's enterprise and tourism minister
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Izba Gospodarcza Hotelarstwa Polskiego (hotel industry chamber)
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Apartur (Barcelona tourist-flat operators)
Apartur (Barcelona tourist-flat operators)
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.