On 8 September 2026, the European Commission proposed a new Affordable Housing Act (“Proposal”) to help Member States and cities tackle housing affordability and availability challenges. The initiative responds to growing concerns across Europe, with more than half of city residents identifying housing as an urgent local issue. Alongside the Proposal, the Commission issued recommendations to boost housing supply through faster planning and permitting, building renovations, repurposing existing properties, and Housing Acceleration Plans (“Recommendation”). The Proposal and Recommendation are available at following links: link1. and link2.

The Proposal introduces the first common EU framework for assessing housing measures that affect the Single Market, while keeping housing policy decisions in the hands of national, regional, and local authorities. Its main goal is to provide greater legal certainty for authorities seeking to address housing pressures.

The Proposal clarifies when local authorities can act to address issues linked to short-term rentals, second homes, and long-term vacant properties. Any restrictions would need to be evidence-based, targeted, and proportionate, ensuring they address genuine local housing challenges.

To improve effectiveness, the Proposal establishes a common approach for identifying “areas under housing stress” and encourages regular review of local measures. This is intended to help residents by supporting better-targeted policies, while also providing more predictability for property owners and investors.

The Proposal now moves, as part of the broader European Affordable Housing Plan, for discussion and negotiation to the European Parliament and the Council.