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EU Puts Housing Crisis at Top of Summit Agenda, Eyes Building Reforms and Short‑Term Rental Curbs

The Commission has signaled a shift toward faster permitting plus limits on short‑term rentals, with a first draft due in December.

Overview

  • EU leaders in Brussels placed rent and housing affordability prominently on the summit agenda after official warnings about a growing social and economic strain across member states.
  • Housing Commissioner Dan Jørgensen outlined two pillars for action: simplifying building rules to accelerate construction and cracking down on abusive short‑term rentals such as Airbnb.
  • Early options under discussion include a target for building permits to be decided within about 60 days and a tax bonus for landlords who rent to young people or families.
  • The Commission plans to publish initial proposals in December 2025, with any binding legislation expected no earlier than 2026 and implementation largely dependent on national and local authorities.
  • EU and Eurostat analyses show sharp decade‑long increases in housing costs, including about +51% in Germany, near +150% in Portugal and Latvia, and roughly +237% in Hungary, fueling political pressure across the bloc.