EU court rules cities can restrict short-term rentals dealing blow to AirBnb
Europe’s top court on Tuesday gave its backing to European cities cracking down on short-term rentals of private homes to solve a housing crunch, dealing a setback to homesharing site Airbnb.
From Amsterdam to New York and Paris, authorities have blamed Airbnb for worsening housing shortages in their cities which have pushed out lower-income residents. France is Airbnb’s second largest market after the United States.
Anne Hidalgo, mayor of Paris, expressed joy at the ruling which handed her a win in a long-running standoff with Airbnb.
“This victory, expected by several cities, marks a turning point in terms of the regulation of short-term rentals as well as a milestone for the right to housing for all,” she said on Twitter.
The Court of Justice of the European Union’s (CJEU) ruling came after a French court sought guidance in a case involving two Parisian apartment owners who were fined by the city’s authorities for letting out second homes on Airbnb without permission.
Owners in Paris are obliged to declare the renting of second homes to the authorities.
The Luxembourg-based CJEU said the French measure was justified as it is proportionate, limited in material and geographical scope, and does not cover the rental of own or primary homes.
“National legislation making the repeated short-term letting of accommodation to a transient clientele which does not take up residence there subject to authorisation is consistent with EU law,” judges said.
“We welcome this ruling that will help clarify the rules for hosts who share secondary homes in Paris,” a spokesperson for Airbnb said in a statement.
