EU Housing Act Stalls Amid Member State Objections
Council of the EU negotiations on the European Affordable Housing Act face growing resistance from around 20 member states and German regional authorities.
Updated on Nov. 5, 2026 in Apartments
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Council of the EU discussions on the European Affordable Housing Act are proving difficult, with a working party meeting on 4 November 2026 expected to examine compromise suggestions from the Irish Presidency. A Council mandate before the end of 2026 now appears highly unlikely.
Why it matters
The draft regulation aims to give local authorities tools to regulate short-term rentals that affect housing access, making the dispute significant for housing availability across Europe. Objections on subsidiarity and competence grounds could reshape how the EU approaches housing policy.
Around 20 Member States have submitted proposed changes to the draft regulation, focused on compatibility with national legislation. Germany's Bundesrat objection, published in mid-October, rests on the principle of subsidiarity, and the outcome of further talks remains unresolved.
The players
Council of the European Union
The EU body in which member state governments negotiate and adopt legislation, including the proposed European Affordable Housing Act.
German Bundesrat
The upper house of Germany's federal parliament, representing the country's 16 states, which filed the subsidiarity objection against the regulation.
The details
A Council working party meeting on 4 November 2026 was due to examine compromise suggestions from the Irish Presidency. The German Bundesrat published an objection in mid-October arguing the EU lacks competence to propose the regulation, while France, Italy, the Netherlands, Austria, and Portugal reportedly raised concerns about legal clarity and scope.
Timeline
Mid-October 2026: The German Bundesrat published its subsidiarity objection.
4 November 2026: A Council working party meeting examined the Affordable Housing Act.
December 2026: A possible first compromise, described by one source as optimistic.
Housing Landscape
The dispute over the European Affordable Housing Act turns on the principle of subsidiarity set out in EU treaties, which limits EU action to areas where it can act more effectively than member states. Germany's regional objection extends that debate into the question of whether housing regulation for short-term rentals falls within EU competence at all.
Renters and landlords in Europe could see changes to how short-term rentals are regulated, depending on whether the EU and its member states reach agreement. The dispute over competence means the final rules, and their effect on housing access, remain uncertain.
The takeaway
Housing regulation at the EU level depends on resolving competence questions between Brussels and member states. Readers following short-term rental rules should watch whether the December 2026 compromise timeline holds.
What happens next
A Council working party is expected to continue examining compromise suggestions, with a possible first compromise discussed for December 2026.
Further reading
Explore more on Apartments to see how housing policy shapes rental options.
More information
Read the German Bundesrat objection to the Affordable Housing Act on the primary government record.
Source note: This article includes information reported by Agence Europe.
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