EU Affordable Housing Act Introduces Stricter Airbnb Rules in the Netherlands

EU Affordable Housing Act Introduces Stricter Airbnb Rules in the Netherlands

The European Commission has unveiled the Affordable Housing Act, a landmark proposal designed to rein in short-term rental platforms like Airbnb across the EU, including the Netherlands. Aimed squarely at easing the affordable housing crisis, the law empowers local authorities to curb holiday lets in areas suffering from “housing stress,” ensuring more properties remain on the long-term rental market.

Background: Why the Affordable Housing Act Matters

Across Europe, major cities are grappling with soaring rents and dwindling availability of long-term homes. The growth of short-term rentals has often been cited as a contributing factor: property owners find it more profitable to cater to tourists or business travellers than to lease apartments for residents. To address this imbalance, the European Commission, led by Vice-President Teresa Ribera, introduced the Affordable Housing Act on 9 September.

Key objectives of the Act include:

• Establishing a common method for identifying areas under housing stress.
• Granting municipalities the authority to restrict or purchase short-term rental units.
• Setting out procedural safeguards to ensure restrictions are justified, transparent, and subject to review.

By harmonising rules across member states, the EU aims to prevent loopholes and promote fair access to affordable housing.

Key Provisions of the New Law

Under the Affordable Housing Act, local authorities will be able to take a series of measures whenever their housing stock is under pressure:

1. Registration Requirements: Hosts must register every property used for short-term lets. Failure to comply could result in fines or removal from booking platforms.

2. Caps on Rental Nights: Municipalities can impose limits on the number of days a property may be rented out annually (e.g., Amsterdam’s existing 30-day maximum).

3. Right of First Refusal: Local councils can purchase properties marketed primarily as short-term rentals, converting them back into long-term residences.

4. Zoning Controls: Specific neighbourhoods can be designated as off-limits to short-term lets if they fall within a housing stress zone.

All restrictions must be supported by data demonstrating that short-term rentals have negatively impacted long-term housing availability in the preceding three years.

Assessing Housing Stress: Methodology and Local Authority Powers

A cornerstone of the Act is its common methodology for defining and measuring housing stress. This framework requires authorities to analyse indicators such as:

• Vacancy rates of long-term rental properties.
• Average rent growth compared to wage development.
• Proportion of dwellings registered as short-term lets.

Only once an area is officially classified as stressed can stricter rules be enacted. This evidence-based approach ensures that interventions are proportionate and targeted where they are needed most.

Impact on the Dutch Rental Market

The Netherlands already enforces local regulations in hot-spot cities:

• Amsterdam caps short-term rentals at 30 nights per year and mandates host registration with the gemeente (municipality).
• Rotterdam, Utrecht, and The Hague have introduced similar schemes, though with varying thresholds and licensing procedures.

With the EU’s Act in force, all Dutch municipalities will gain a uniform legal basis to tighten controls or acquire properties from platforms like Airbnb. This is expected to:

• Increase long-term availability, especially in high-tourism districts.
• Stabilise rental prices by reducing competition for the same housing stock.
• Encourage investment in regulated, purpose-built rental accommodation.

However, the law also raises questions for property owners and professional hosts, who must prepare for stricter compliance and potential loss of rental income.

What Tenants and Landlords Need to Know

For prospective tenants, the Act offers hope of improved affordability and choice. Keep these points in mind:

• More listings: As short-term properties return to the long-term market, new rental opportunities will emerge.
• Transparency: Registered listings must display clear information on tenancy terms, deposit requirements, and rental caps.
• Know your rights: Dutch rental contracts remain protected by strong tenant laws, including limits on rent increases and mandatory property maintenance.

Landlords and hosts should:

• Register properties immediately once local rules apply.
• Review existing bookings to ensure they don’t exceed night caps.
• Consult legal advice on potential buy-back schemes if the municipality invokes its right of first refusal.

Next Steps and Implementation Timeline

The Affordable Housing Act follows the standard EU legislative process:

1. Parliamentary Readings: Three readings in the European Parliament may introduce amendments.
2. Council Approval: Member states will vote on the final text.
3. Official Adoption: Once passed, the Act enters into force 20 days later.
4. Review Cycle: An evaluation is scheduled five years post-implementation to assess effectiveness and adjust rules.

Dutch municipalities should closely monitor these developments and begin drafting local ordinances to align with the new EU framework.

Conclusion

The EU’s Affordable Housing Act represents a significant step toward balancing tourism-driven short-term rentals with the pressing need for affordable, long-term housing in the Netherlands. By granting cities robust tools to regulate Airbnb and similar platforms, the law seeks to stabilise rental markets and protect community living.

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