The European Holiday Home Association (EHHA) notes with concern European Commission President von der Leyen’s sudden announcement in her State of the Union address that the European Commission will propose a new legal initiative on short term rentals (STRs).
Such a step appears at odds with the Commission’s own simplification agenda, as Member States and STR stakeholders are still in the process of implementing the recently adopted EU Regulation on STR data collection and sharing (STR Regulation) which will take effect in May 2026. Instead of reducing complexity, a parallel initiative risks creating additional red-tape and legal uncertainty, contrary to Mario Draghi’s call for simpler and more predictable rules to strengthen European Competitiveness.
EHHA stresses that this announcement is premature, as the public consultation on the Affordable Housing Plan has not yet closed. By jumping ahead of the evidence and not waiting for the data the STR Regulation is designed to deliver, the Commission risks undermining a fair, fact-based debate. Premature political signals before the consultation ends raise questions about credibility of the process and weaken trust in EU policymaking.
EHHA underlines that while housing is a significant challenge, the issues linked to STRs are limited to a handful of high-demand cities. Across most of Europe – particularly in rural and less-visited areas — where communities face depopulation and economic decline — STRs bring jobs, income and vitality and have become a critical driver for their prosperity. The challenges of a few cities should not dictate restrictive rules for the entire EU.
The lack of affordable and available housing is a multifaceted problem that must be addressed by tackling its underlying causes, and focusing on STRs will not make housing more affordable for EU citizens. By piling on new rules, the European Commission risks turning its back on a critical part of the tourism and travel ecosystem across Europe (especially for local communities), despite EUROSTAT data showing that Europeans clearly value STRs—with more than 850 million nights booked in 2024 alone. EHHA will therefore provide feedback to the Affordable Housing consultation in the hope that the European Commission takes a holistic approach and suggests policy measures that truly have an impact, ensuring both affordable homes and the freedom for families to travel.
EHHA stands ready to engage constructively but warns that adding new rules on top of EU’s intricate regulatory framework – and in particular the STR Regulation – would only add complexity, undermine legal certainty, and harm both Europe’s tourism sector and the livelihoods of countless EU citizens who depend on STR income amid rising costs. We urge the Commission to refrain from introducing additional legal initiatives until the impact of the STR Regulation – adopted to improve data sharing, enhance transparency, and lead to justified policy making at the local level – has been thoroughly assessed and any gaps in the current EU regulatory framework have been properly and carefully identified. Instead, its efforts should focus on addressing the persistent fragmentation of STR rules across Member States.