Government is critical of EU Regulation on Affordable Housing

On 15 October 2026, the Government submitted a Union communication to Parliament where it outlines its position concerning the Commission proposal for a Regulation on affordable housing (Affordable Housing Act). The Government calls for changes to the Commission’s proposal as the draft proposal is considered to significantly restrict the competence of the Member States by virtue of internal market regulation.

The European Commission published its proposal for the Affordable Housing Act on 9 September 2026. The act would create a framework for measures by the Member States to safeguard housing affordability and availability. The proposal is part of the European Affordable Housing Plan published by the Commission on 16 December 2025. A Europe communication on this was submitted to Parliament on 17 April 2026 (E21/2026).

The aim of the Commission proposal is to clarify the conditions based on which the Member States could safeguard housing affordability and availability in accordance with the EU internal market rules. The proposal would create a common framework for assessing such measures. The regulation could apply to measures by authorities of the Member States that restrict e.g. short-term accommodation rental services (such as Airbnb) or acquisition and use of dwellings for purposes other than permanent residence. 

The Commission proposal is targeted to areas where housing demand exceeds the supply and the affordability and availability of housing has suffered from this. These include large cities and tourist destinations. The competent authorities should be able to provide evidence of such housing pressure before introducing any restrictive measures. 

Housing and housing market are local in nature and they depend on earlier national decisions