A proposed European Union law could block British citizens from purchasing second homes in popular holiday destinations across the continent. According to reporting by The Telegraph, the European Commission put the Affordable Housing Act before the European Parliament, aiming to give towns and cities the legal backing to curb holiday-home ownership in areas facing severe housing stress.
The Affordable Housing Act Criteria and Thresholds
To implement restrictions on foreign buyers, local authorities must meet specific economic thresholds outlined in the draft legislation. According to the text reviewed by The Telegraph, an area’s average house price must be at least eight times higher than the average local annual income. Furthermore, that price-to-income ratio must have risen over the preceding decade, and projections must show no expectation of relief within three years. If these conditions are met, local councils can establish “targeted, necessary and proportionate” restrictions on property acquisitions.
Political Divisions and Reactions from MEPs
The legislative push has triggered sharp divisions among European lawmakers. Dirk Gotink, a Dutch MEP from the centrist New Social Contract party, warned The Telegraph that the law will have “serious consequences” for British buyers. “The ideological colouring of this proposal is quite clear,” Mr. Gotink said, arguing that it gives legal backing to restrict buying in tourist hotspots across Spain, Croatia, Italy, and France while doing nothing to solve Europe’s broader housing crisis. Conversely, European Commission President Ursula von der Leyen defended the initiative, stating that a lack of affordable housing concerns many citizens.
Local Backlash and Broader European Context
Local leaders in countries like Spain have long blamed foreign property investors for inflating prices and creating acute housing shortages for residents. Additionally, the Balearic Islands government proposed prohibiting home purchases by non-residents to prioritize local housing needs. While previous local crackdowns faced legal challenges from companies like Airbnb and concerned member states worried about litigation, the EU’s proposed framework is expected to embolden local authorities.
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Frequently Asked Questions
What triggers the EU housing restrictions?
Restrictions apply when an area’s average house price is at least eight times higher than local annual income, that ratio has grown over the past decade, and prices are not expected to ease within three years.
Which countries will be most affected?
According to MEP Dirk Gotink, tourist hotspots in Spain, Croatia, Italy, and France are expected to face the heaviest restrictions under the new framework.
Has the law officially taken effect?
No. The Affordable Housing Act was put before the European Parliament and must still pass through both the Parliament and the Council before becoming formal EU law.