EU law to tighten Airbnb rules in the Netherlands

The European Commission has put forward a new law that would see Airbnb and other short-term let companies face new restrictions in an effort to address the affordable housing crisis.

EU law targets short-term rentals

On Wednesday, September 9, European Commission Vice-President Teresa Ribera presented the Affordable Housing Act, which would regulate Airbnb and other short-term let companies in a bid to reduce the affordable housing crisis.

The law would give local authorities greater power to regulate short-term lets and purchase short-term let properties in areas “under housing stress”. Certain countries, including Germany, already have methods for identifying areas “under housing stress”. 

However, the Act will introduce a common methodology for assessing housing stress and “common procedural requirements governing the justification, proportionality, transparency and review of those measures”. 

Before introducing restrictions, local authorities must show that short-term lets have reduced local affordable housing availability over the previous three years.

Impact on the Dutch rental market

While people across all major Dutch cities like Amsterdam, Rotterdam, Utrecht and The Hague struggle to find an affordable, long-term rental contract, short-term holiday lets continue to expand. The Netherlands already has some restrictions in place, such as Amsterdam’s 30-day annual cap on holiday rentals.

"When the market fails to deliver something as fundamental as an affordable home, public authorities have a responsibility to act," Ribera said, while announcing the policy.

Following the EU’s standard legislative process, the Affordable Housing Act will now undergo three parliamentary readings, during which some details may change. The law will go to a vote, and if adopted, will be implemented 20 days later. The Act will then be reviewed in five years.

This article originally featured on IamExpat Germany.