France Tightens Short-Term Rental Laws

The deregulation of the tourist rental market is not just a French concern. Other countries have been considering the matter for some years.

French politicians have passed a law to make it harder for people to rent out their property on Airbnb for short-term lets.

The new law has cross-party support and is aimed at better regulating the furnished letting market for tourist accommodation. In particular it has fixed a much-criticised tax loophole that benefits short-term rental platforms.

The law also returns some power to mayors to tackle the French housing crisis. It should take effect in early autumn.

Some politicians on the right had been reluctant to support the change and some measures of the bill have been weakened while politicians on the left have called for even tougher measures.

The change means tax relief on income from letting furnished tourist accommodation is being cut to 30% from the previous - and present - level of 71%.

In addition, there are plans for the general introduction of a registration number for all rentals of furnished tourist accommodation, a monitoring tool long requested by French mayors to allow them to have better control of the development of their housing stock. It also regulates the proliferation of second homes by allowing local councils to restrict new construction in certain areas to primary residences.

Airbnb's managing director for France and Belgium, Clément Eulry, has said he is generally in favour of the new rules.