A BAN ON short-term lets under 90 days is being considered by the EU in its response to the housing crisis.

The proposal may be included in the report by the EU to enforce a minimum letting period on homes, vice chair of the European Parliament’s committee on housing and MEP Ciaran Mullooly has said.

It is understood that the European Commission, which is seeking to tackle the affordability crisis in Europe, is taking a cautious approach to making any changes to short term let regulations due to the EU’s lucrative tourism sector.

New regulations with short-term lets will soon come into effect in Europe, which will force platforms such as Airbnb and Booking.com to register properties in order to establish the number of active listings.

The data will be used by the Commission to determine if European intervention is needed, a senior source said, but the EU is concerned that any interventions could have a harsh impact on the tourism industry.

Similar concerns have been highlighted in Ireland following the announcement of a potential ban on planning permissions for short-term lets in towns with populations of more than 10,000.

Independent Ireland’s Mullooly believes a limit on the length of terms allowed for listings will be proposed by the European Parliament’s housing committee report later this year.

He told The Journal in Brussels that while the committee is “limited” in what it is able to propose, it is seeking to take some action to address short-term lets, and their impact on the local housing supply.

Labour MEP Aodhán Ó Ríordáin, a substitute member of the committee, said there is nothing that should be counted out by politicians when drafting the final report. He added that there is also a need to standardise tenants’ rights in Europe.

The Commission is of the view that it is the role of the Irish government to regulate the local housing market, while its housing policy will explore methods to boost financing and delivery of housing.

It has already conceded that state aid rules for local authorities will be relaxed to increase the construction of social homes. It is understood that it will also seek to guarantee money from lenders so firms building new housing have security in their funding.

The EU cannot directly set housing targets and does not have the power to regulate the property market in individual member states. However, it is possible for the commission to provide better access to funds and underwrite loans to improve delivery.