Spain's new Airbnb laws to "trigger domino effect" with "Italy clearly next"
EXPERTS fear Italy is the next country to target Airbnb after Spain introduced stringent new laws that could hit Brit holidaymakers in the pocket.
Last week, a new register in Spain will require all properties used for tourism and short-term holiday rentals to have a mandatory registration code to operate legally.
Thousands of properties could be pulled from the short-term rental market and it could push up prices for holidaymakers and property owners in Spain.
Now experts fear Italy could be next to target Airbnb, with the country engaged in a court battle to ban key boxes on streets in a clampdown on short term lets.
Kundan Bhaduri, Entrepreneur at The Kushman Group, said Italy is no doubt next to target Airbnb.
He added: "Of course, this is not really about national security. It is really political survival in countries where locals are priced out of the very postcodes they were born in. In Florence, over 30 per cent of flats are listed on Airbnb. In Rome a staggering 35 million tourists arrived last year occupying a huge swathe of the housing stock.
"The backlash is brewing and it is property owners that are in the stockpot. Spain’s move to demand a national registry for short-term lets is just the opening salvo. Italy is clearly next. France, Portugal and even the balmy Balearics have all flirted with similar measures.
"The EU smells votes in attacking “unregulated” holiday lets, and Airbnb hosts like me now find ourselves painted as moustache-twirling villains standing between honest citizens and affordable housing. Should you dump your Airbnb shares? Not necessarily yet. The brand remains powerful, and tourist demand is resilient. But expect more countries to follow Spain and Italy down this path."
Harry Goodliffe, Director at HTG Mortgages, said Spain's ruling could lead to a “domino effect” across the EU.
He continued: "Spain’s crackdown could trigger a domino effect across Europe and Italy looks next in line. The combination of overtourism and local housing pressures is pushing governments to act, and short-term lets are the obvious target.
"If Italy tightens the rules, expect thousands of listings to vanish, hitting both owner profits and tourist affordability. For landlords banking on Airbnb income, this should be a loud wake-up call to diversify. The golden days of ‘easy Airbnb money’ are fading fast and relying solely on short-term lets is starting to look like a risky strategy."
Pete Mugleston, Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk, agreed, adding: “Spain's move could signal that more countries are looking to crack down on Airbnb and rental properties across Europe. While it's unlikely Italy will introduce legislation immediately, those with property in the country or who are looking to buy should be wary of potential future changes.
"Politics is volatile across the continent, and a smart politician could look to tap into the discontent around Airbnb for political gain. If more countries follow Spain's lead, the high point of Airbnb could already be firmly in the past.”
Tony Redondo, Founder at Cosmos Currency Exchange, predicted it would actually be France that is more likely to be the first to crack down on Airbnb.
He added: “Spain, under socialist PM Sánchez, stands alone in its strict Airbnb restrictions. Centre-right governments in Italy, Portugal, Croatia, Greece, and Austria are unlikely to follow, given their opposing political stance.
"Italy’s Airbnb regulations, which require a CIN code and in-person check-ins, are far less stringent than Spain’s crackdown, which resulted in the delisting of 66,000 properties.
"France may emulate Spain’s approach, potentially harming its tourism industry by raising traveller costs, reducing flexibility, and burdening property owners with extra compliance costs and taxes."
