Balancing Rent Control and Property Rights

The article "Balancing Rent Control and Property Rights" discusses the escalating housing crisis in major European cities, highlighting how house prices in the EU rose by 57.9% and rents by 27.8% between 2010 and early 2025. This surge has created a pressing need for affordable housing options, driven by market speculation, inflation, and the rise of short-term rentals. The authors, Allegra Grillo, Arnulfo Daniel Mateos Durán, and Alessio Sardo, are affiliated with the University of Genoa and involved in the ERC HABITAT project, which investigates urban inequality in Europe. The publisher, Verfassungsblog, serves as a global forum for scholarly discussions on public law.

The housing situation in Europe has transitioned from a warning sign to a full-blown emergency. Housing production has slowed, and public housing stock has been either sold off or neglected, leading to a reliance on market forces. As a result, tenants are increasingly pressured, with eviction requests in Italy showing a marked increase in cases related to arrears over the decades. This crisis has prompted governments to reintroduce rent control measures to stabilize the housing market and protect tenants.

The new wave of rent controls raises complex legal questions regarding the balance between protecting tenants and respecting landlords' property rights. While these measures aim to curb speculation and ensure housing access, they often face constitutional challenges in courts. The European Convention on Human Rights (ECHR) stipulates that any interference with property must pursue a legitimate public aim and be proportionate, leading to an ongoing legal debate over how far states can regulate the rental market.

The article discusses several landmark cases across Europe that illustrate the legal tensions surrounding rent control. In Hutten-Czapska v. Poland, the European Court of Human Rights ruled that overly strict rent regulations imposed a disproportionate burden on landlords, violating their rights under Article 1 of Protocol 1 of the ECHR. This case highlights that while states can regulate rental markets, they must allow landlords meaningful economic use of their property. 🇩🇪 Germany's Constitutional Court Decisions Germany's Federal Constitutional Court has established a robust framework regarding rent control, holding that property rights encompass the right to earn income from rental agreements. The annulment of Berlin's Mietendeckel rent freeze in 2020 emphasized that rent control is permissible but must be enacted by the appropriate legislative authority. This ruling reinforces the necessity for a balanced approach to property rights and social goals. 🇫🇷 France's Legislative Deference In France, the Conseil constitutionnel typically defers to the legislature in economic matters, confirming that facilitating access to housing is a legitimate public aim. In a 2014 decision on the Loi ALUR, the Council upheld provisions for rent caps in areas with shortages, illustrating a commitment to balancing tenant protection with property rights. 🇮🇹 Italy's Balancing Act The Corte Costituzionale in Italy has navigated the tension between property rights and social goals, sometimes upholding rent restrictions while also declaring them unconstitutional. The Court emphasizes that while tenants require protection, property owners should not bear the brunt of housing market stabilization without justification.

The article concludes that European constitutional courts consistently affirm that while states may intervene in rental markets for social purposes, they must adhere to strict legal boundaries that prioritize property rights. This dynamic complicates efforts to implement comprehensive rent policies aimed at ensuring affordability, ultimately making it more challenging for vulnerable populations to secure stable housing.