French lawmakers, on Thursday, November 7, passed a law aimed at increasing the regulation of tourist accommodation, such as Airbnb, to combat the shortage of affordable housing.
The bill – the result of a compromise between the two houses of French parliament – had been unanimously approved by the upper house Sénat, on Tuesday. The Assemblée Nationale adopted the legislation by a large majority, with the far right voting against it.
The legislation, which has been in the works since April 2023, aims to slash tax breaks for tourist properties, in a bid to curb short-term rentals amid shortages of affordable housing.
The aim is to regulate short-term rentals, a business model that is now "spiraling out of control," said Annaïg Le Meur, one of the lawmakers behind the bill. The boom in Airbnb-type rentals has contributed to "encouraging speculation" and "further complicating access to conventional housing," she said.
The tax allowance for furnished tourist accommodation would fall to 50%, down from 71%, with a cap lowered to €77,700 ($83,500). The legislation would also slash tax breaks for non-classified tourist properties to 30%, dropping from 50%, with a €15,000 cap.
The legislation also gives mayors a "toolbox" to regulate short-term accommodation, Iñaki Echaniz, co-author of the bill, said in a statement. Local authorities will also be able to set quotas for furnished tourist accommodation.
"This is a bill for the French, for all those who are looking for long-term accommodation and who are unable to find it," Housing Minister Valérie Létard said in the Sénat.