Latest / STR Unpacked / Brussels Is Building Cities A Legal Shield
Transcript
- Ben: Good morning and welcome to your short-term rental bulletin on the 30th of July. So, Brussels is preparing to change the terms of the fight over short term rentals. So, Bloomberg reported yesterday that the European Commission is working on a common EU method for identifying areas under housing stress alongside a process for judging which restrictions count as proportionate. Sources say the aim is to give local authorities a legal shield against court challenges. The Commission's published position confirms a direction. The Affordable Housing Act is due this year and short-term rentals are a central component of it. The consultation for that closed back in March. So here's why proportionately is the word that matters. Since 2020, the benchmark has been the Cali Apartments judgment. This is where the Court of Justice held that Paris style authorization is lawful under the Services Directive. Provided it is justified and proportionate. Cities have been dragged into court over that test ever since. Now look what Athens published on Tuesday. In the three central districts where new regulations are frozen, short-term let growth has fallen from 18 to 20% a year to down between 1.7 to 5.4%. The mayor says the measure is working. The council also admits. Pressure is leveling off rather than falling. And that's because existing stock stays live. So nothing changed in the law today, but proportionately is becoming an evidence contest. And the cities are the ones building the data sets. So the next licensing fight won't turn on rights, but it will turn on data. That is your briefing. Thank you for watching, and I'll see you tomorrow.