The right to housing and the regulation of the tourist rental market in the European Union: comments on the Cali apartments ruling and its reception in Spain

Abstract

The Court of Justice of the European Union, in its Cali apartments judgment, has recognised the possibility for Member States to regulate the tourist accommodation market in order to try to guarantee the right to housing for their citizens. In this sense, the fight against the shortage of housing may be considered as a reason of general interest to justify the imposition of strict authorisation regimes for the provision of a service which, in principle, should be freely exercisable. Furthermore, the judgment provides local authorities with a wide leeway to shape these restrictions of the freedom to provide services, as it understands that they are the public authorities best placed to assess and respond to the impact that this type of services may have on the supply of rental housing in their own territories.

The Supreme Court has already made use of this doctrine to confirm the legality of the strict requirements imposed on the establishment of tourist accommodation by the city of Bilbao through its urban planning powers, on the understanding that it has as clear democratic legitimacy to do so.