Call to Ban Short-Term Rentals
The Real Estate Agents Registration Council has proposed ending daily accommodation rentals. This move aims to protect consumers, stabilize the property market, maintain tourism standards, and safeguard the country’s international reputation.
Concerns Raised in Parliamentary Meeting
On Tuesday, the Council participated in a House Committee meeting on Energy, Trade, Industry, and Tourism. During the session, it expressed concerns about the increasing impact of short-term rentals on the real estate sector.
Impact on the Housing Market
The Council warned that the rising number of short-term rentals is reducing the supply of long-term housing. As a result, rental and property prices are increasing. High interest rates and inflation further worsen the situation.
It pointed to cities such as Barcelona, New York, and Athens, where authorities have restricted short-term rentals. These measures aim to protect the housing market and prevent unfair competition.
Regulatory Measures at the EU Level
The European Union has recognized short-term rentals as a growing problem. Therefore, it has introduced policies to enhance transparency and improve data collection. These steps will help develop suitable legislative measures.
Lack of Safety and Consumer Protection
The Council highlighted the lack of regulation in the short-term rental sector. Many properties do not meet safety and quality standards. As a result, consumers face financial risks and possible exploitation by unregulated real estate agents.
It urged the government to introduce legal frameworks that would:
- Establish clear safety and suitability standards
- Ensure fair competition in the accommodation market
- Protect consumers from substandard rental conditions
Challenges in Monitoring and Compliance
One major concern is the gap between registered accommodations and those advertised online. Because monitoring short-term rentals is difficult, many properties operate without oversight. To address this issue, authorities plan to create an official register to legalize and regulate unregistered properties.
Effects on Tourism and Fair Competition
The Council warned that the current situation harms the country’s tourism reputation. Unregulated short-term rentals create unfair advantages for operators who bypass government rules. Meanwhile, licensed accommodation providers struggle to compete.
By enforcing stricter policies, the Council hopes to restore balance. Its call to ban short-term rentals reflects a commitment to ensuring fair competition, housing affordability, and consumer protection.
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Source: Cyprus Property News
