ECJ ruling on short-term rentals: Airbnb ban in case of legal housing shortage

Paris is also battling the housing shortage and thus restricting short-term rentals through Airbnb. That is legal, the ECJ decided, a ruling that could have consequences far beyond France.

A permit requirement for short-term apartment rentals, for example through Airbnb, is compatible with European law. Combating the housing shortage is in the general interest and justifies the measure, said the European Court of Justice (ECJ) in Luxembourg in its decision.

France had introduced that permit requirement for the Paris metropolitan area and all cities with more than 200,000 inhabitants. Because the owners of two studios in Paris did not comply, they were fined 15,000 euros each. They had to offer the apartments again on the normal rental market.

National line in accordance with European legislation

Then the owners called the Court of Cassation, the highest court in France. She approached the ECJ to clarify the question whether the national directive is in line with European law.

This has now been confirmed by the Court. With the requirement of the permit, a system must be created to combat the housing shortage “in order to take into account the deterioration of the conditions of access to housing and the intensification of tensions in the real estate markets, which is an imperative reason for general interest, “he said in the ruling. . The measures taken by the French authorities are proportionate: the objective pursued cannot be achieved through a more lenient regime.