Short-term rental (STR) accommodation has expanded rapidly across the EU in recent years. In the debate about the impact of short-term rentals (STRs), some local authorities in the EU have introduced restrictions to address housing affordability and urban environment concerns, often with limited evidence-based analysis. However, the causal relationship between STR activity and these outcomes remains unclear. Assessing the true causal effects of STRs requires robust evaluation methods that go beyond simply observing correlating trends.

This report, commissioned by Booking.com, establishes an evidence-based framework to guide STR regulation in accordance with the EU Services Directive and the Better Regulation Agenda. It offers practical guidance for local authorities on how to assess whether regulatory intervention is necessary and how to establish causal impacts using rigorous economic methods. Where intervention is justified, the report advocates for best practice: selecting the least restrictive measure that effectively addresses the identified market failure while minimising unintended consequences to the market, consistent with the EU principle of proportionality.