Budapest Joins European Crackdown on Airbnb Rentals

European cities tighten rules on short-term rentals

In 2026 Budapest joined a growing group of European capitals including Vienna, Athens and London that are tightening regulations on short-term rentals such as Airbnb.

City authorities across Europe are increasingly introducing restrictions in an effort to return more housing to the long-term market and reduce pressure on rental prices.

Over the past decade the rapid growth of short-term rental platforms has transformed housing markets in many tourist destinations. Entire apartments and even buildings have been converted into tourist accommodation, reducing the availability of long-term housing for residents.

Municipal governments are now responding with stricter regulation aimed at protecting local communities.

Total ban introduced in central Budapest district

One of the most radical measures in Europe has been introduced in Budapest’s District VI, known as Terézváros. From January 2026 short-term tourist rentals in private apartments have effectively been banned in this central district.

The decision followed years of complaints from residents who argued that the neighbourhood had become dominated by tourism activity, leading to rising rents and a loss of residential character.

Property owners challenged the regulation in court, but Hungary’s Supreme Court upheld the local decree, confirming that municipalities have the authority to regulate short-term rentals in order to protect housing availability.

Vienna applies strict 90-day rental limit

Vienna has taken a different but equally strict approach. Under updated building regulations, residential properties can only be rented out for short-term stays for up to 90 days per year.

This rule allows occasional home-sharing but prevents full-time commercial use of residential apartments as tourist accommodation.

Owners who wish to rent properties for more than 90 days must obtain special permits and meet strict requirements including building safety regulations and approval from other property owners.

Athens strengthens national regulation of short-term rentals

Greece has introduced national legislation regulating short-term rentals through Law 5170/2025. The law requires property owners to register rental properties and comply with safety standards.

Each property must display a registration number and meet requirements including ventilation standards, liability insurance and fire-safety equipment.

Authorities have also discussed freezing new short-term rental permits in central Athens until the end of 2026 to prevent further pressure on the housing market.

London maintains 90-night cap on short-term rentals

London regulates short-term rentals through a 90-night annual cap. If a property is rented for more than 90 nights per year the owner must obtain planning permission.

Local authorities can impose fines of up to £20,000 for exceeding the limit without authorization.

Officials say the rule helps ensure that residential housing is not permanently converted into tourist accommodation.

European housing policies shift toward stricter regulation

Although the regulatory approaches differ, European cities share a common goal: protecting housing supply for residents while maintaining sustainable tourism.

Short-term rental platforms have significantly reshaped urban housing markets. In response many governments are introducing caps, licensing systems or outright bans in specific areas.

As experts at International Investment note, stricter regulation of short-term rentals is becoming a long-term trend across Europe. Cities with heavy tourist flows are increasingly prioritizing housing availability for residents over unrestricted growth of short-term rental platforms.