The European Commission has proposed new rules that would make it easier for local and national authorities across the EU to restrict the purchase and use of second homes in areas facing severe housing shortages. The proposed Affordable Housing Act aims to create the first common EU framework for assessing housing policies that affect the single market, providing greater legal certainty for interventions in pressured housing markets. While the proposal does not introduce an EU-wide ban on second homes, it allows measures targeting non-primary residence uses in cities, tourist destinations, and islands where demand far exceeds supply.

Authorities would be able to implement restrictions on non-primary residential use, favour owner-occupation or specified buyer groups, and regulate long-term vacancies, provided these respect legal certainty and are proportionate. The act also addresses short-term rental restrictions, which would require evidence of significant long-term impact on housing affordability before measures could be imposed. The Commission highlighted that the initiative complements efforts to increase housing supply and does not retroactively affect existing property rights.

The proposal now moves to the European Parliament and Council for negotiation and must be approved by both before becoming law. This move comes amid rising concerns over affordability, with EU house prices having increased nearly 65% since 2015, and reflects a shift toward clearer legal guidelines for managing housing pressures without imposing new ownership restrictions.