Hungary, one of Central Europe’s most popular city break destinations, is looking to implement a ban on new Airbnb licences and increase taxes on short-term apartment rentals in Budapest. Economy minister Marton Nagy introduced the proposal just a month after residents of Budapest’s sixth district voted to prohibit short-term rentals starting in 2026, marking the first such ban in a top European tourist spot. Local residents in several tourist hotspots in Europe have pointed fingers at short-term rentals for pushing up property prices.
In 2023, Budapest was recognised as the most sought-after city for short-term stays, recording 6.7 million guest nights, surpassing cities like Vienna, Prague, Warsaw, and Krakow. Accommodation on Airbnb in Budapest ranges from budget-friendly £60 stays for a room to £120 for entire apartments for a two-night stay over the weekend. For instance, a city centre property with a hot tub can be booked for £75 per night. Minister Nagy cautioned that holiday rentals might face constraints and hinted at a potential moratorium and tax increase in Budapest. He stated, “The Airbnb market will change, and it is sure that it cannot grow further.”
Negotiations are said to be ongoing with tourism industry trade associations regarding the government’s proposed regulations. However, Mr Nagy emphasised that the changes would not impact short-term rental properties outside the capital. Meanwhile, in Barcelona, Mayor Jaume Collboni has declared that the city will cease renewing tourist apartment licences after 2028, aligning with Budapest’s efforts to curb short-term rentals.
Across the UK, actions are being taken to tackle the matter in central London, known as a major hub for short-term lets. New rules have been introduced requiring landlords to seek approval from their local council to convert their property into a short-term let. Notably, the regulations exempt individuals renting out their primary residence for fewer than 90 nights a year.
As cities like Budapest, Barcelona and London grapple with the challenges posed by short-term rentals, governments are making moves to address overtourism and rising property prices caused by the growing popularity of platforms like Airbnb. The tourism industry and local communities are closely watching these developments as they navigate the balance between welcoming visitors and preserving the livability of their cities.