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Europe promotes a plan to curb the housing shortage and regulate tourist rentals

Europe’s housing crisis already affects millions of families. The European Parliament proposes measures to increase supply and regulate tourist flats. Barcelona could see changes in access to housing and the rental market.

The shortage of affordable housing in Europe is already being felt in cities such as Barcelona, where finding a flat has become an obstacle course. The European Parliament has approved a report acknowledging a shortfall of 10 million homes across the continent and proposing an Affordable Housing Plan to boost construction and curb the rise of tourist rentals, which have pushed up prices and reduced the supply for residents. In Barcelona, especially in Ciutat Vella, where much of the tourist accommodation is concentrated, this phenomenon is particularly visible.

The proposals include allowing town and city councils and local authorities direct access to European funds to build affordable housing, and establishing common regulation for tourist rentals so that municipalities can intervene when tourist pressure affects the residential market. In Barcelona, many tourist flats are expected to be put up for sale from 2028, which could ease the market.

The report also proposes cutting red tape for building permits, applying a super-reduced VAT rate to housing, promoting the industrialisation of construction and introducing tax incentives for young buyers. In addition, the European Commission will have to turn these recommendations into concrete policies before the end of 2026.

If implemented, these measures could significantly affect cities such as Barcelona, where strong tourist appeal — key to the local economy — has in recent years become one of the main urban challenges, particularly because of its impact on access to housing.

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