**Pressure Mounts on Airbnb as Spain’s Clampdown Sparks Fears of Europe-Wide Restrictions**
Experts are warning that Europe’s popular short-term rental market may be on the cusp of sweeping regulatory changes, as Spain’s recent decision to tighten restrictions on properties listed on platforms like Airbnb could pave the way for a “domino effect” across the continent – with Italy expected to be first in line to follow suit.
Spanish authorities have unveiled a new law mandating that any property let out for short-term holiday stays must be officially registered and possess a government-issued code. This initiative, aimed at cracking down on unregulated rentals, could see thousands of holiday homes withdrawn from the marketplace. Industry insiders predict that this reduction in supply may drive up prices for travellers, potentially by as much as 20%.
Analysis suggests the reverberations will not end within Spain’s borders. Italy, a country with a booming tourist sector and tens of millions of visitors annually, is already embroiled in a legal fight to ban the use of street key boxes as it seeks to curtail the proliferation of short-term lets. With anti-tourism protests breaking out in major cities, pressure is mounting for Italian lawmakers to follow Spain’s example.
According to Kundan Bhaduri, an entrepreneur at The Kushman Group, the move towards regulation is rooted not just in economics, but also in social tensions. “What’s taking place isn’t just about national security; it’s about safeguarding locals who find themselves priced out of their own neighbourhoods,” he remarked. Bhaduri highlighted that, in Florence alone, more than 30% of available flats are currently listed on Airbnb. Rome is facing a similar squeeze, with last year’s staggering influx of 35 million tourists occupying a significant portion of the local housing stock.
Industry players are bracing for further action, with France, Portugal, and other Mediterranean hotspots reportedly exploring similar measures. There is consensus that policymakers in Brussels see political mileage in targeting so-called “unregulated” holiday lettings, which have come under fire for undermining long-term housing affordability and community cohesion.
Harry Goodliffe, director at HTG Mortgages, argues that the trend will not stop at Spain. “We are witnessing a pivotal moment,” he said, “where national housing concerns and the issue of overtourism are pushing governments to take decisive action. Should Italy proceed with tighter regulations, many short-term rental listings will likely disappear practically overnight, affecting both landlords’ incomes and visitors’ travel costs.” He advised landlords to reconsider strategies that rely solely on the steady flow of income generated by platforms such as Airbnb.
Not everyone believes Italy’s response will be immediate, however. Pete Mugleston, managing director of onlinemortgageadvisor.co.uk, advises caution but does not dismiss the prospect of similar actions spreading. “It’s possible that some governments, looking to channel public frustration over housing and tourism pressures, may choose to replicate Spain’s approach for political gain,” he explained.
On the other hand, Tony Redondo, founder of Cosmos Currency Exchange, speculates that France, rather than Italy, may be next to implement far-reaching controls. He notes that, while Spain’s left-leaning government has taken the initiative, other countries led by centre-right coalitions may be less inclined toward stringent regulation for now. Redondo notes that Spain has already purged more than 66,000 properties from short-term holiday platforms as a result of the crackdown.
Should France choose to follow Spain’s model, Redondo suggests the move could have an adverse impact on one of its most vital industries. Strict new rules could inflate the cost of accommodation for travellers, reduce the flexibility for hosts and guests alike, and increase compliance burdens on property owners, potentially harming the wider tourism economy.
For now, uncertainty plagues the short-term letting sector, with owners, renters, and tourists all waiting to see where the next domino will fall. Meanwhile, the debate continues: how can Europe strike a balance between welcoming visitors and ensuring residents can afford to live in their own cities?
Analysts agree that anyone invested in the short-term rental market should keep a close eye on developments in European parliaments in the coming months. The era of unchallenged growth for platforms like Airbnb may soon be giving way to one of much tighter oversight and control.