Cheap Airbnb stays in Budapest could go up in price with higher taxes on short-term lets in new clampdown

Hungary's government is considering a moratorium on new Airbnb licences in Budapest and raising taxes on short-term apartment rentals in the capital city.

Economy minister Marton Nagy announced the plans about a month after residents of Budapest's sixth district voted to ban short-term rentals from 2026.

It is the first such ban in one of Europe's most popular tourist destinations.

In the UK, the Government has moved to address problems in areas, such as central London, where there are large numbers of short-term lets.

Ministers have announced changes so landlords have to apply for consent from their local town hall to turn their home into a short-term let.

However, the rules do not apply to those renting out their main home for fewer than 90 nights a year, and only new short-term lets will require planning permission, with existing ones automatically reclassified.

Westminster council stresses: “Our short-term let team will investigate any properties that are reported for suspected breach of the 90-night calendar limit or that cause excessive disruption and problems within communities.”

Residents in some areas, including parts of the capital, complain about large numbers of people in short-term holiday lets, sometimes creating excessive noise.

Airbnb stresses: “Part of being a responsible Host is helping your guests understand best practices for interacting with your community.

“When you communicate local rules and customs with your guests, you’re helping to create a great experience for everyone.”

There are many companies, other than Airbnb, which are platforms for short-term lets.

Some residents in European tourist hotspots blame short-term lets for driving up home prices.

In central Europe, Budapest was the most popular city for short-term stays in 2023 with 6.7 million guest nights, according to Eurostat, ahead of Vienna, Prague, Warsaw, Krakow and others.

The Hungarian capital is popular with stag and hen party groups.

Eurostat figures show almost 719 million guest nights spent in the European Union were booked via online platforms Airbnb, Booking, Expedia Group and Tripadvisor last year, with Paris leading EU capitals with over 19 million guest nights.

"We are thinking about a possible moratorium and a tax hike in Budapest," Mr Nagy, adding that the government had not made a decision yet.

"The Airbnb market will change, and it is sure that it cannot grow further," he said, calling the issue a question of housing policy.

Mr Nagy also said that the government was negotiating about the proposed new rules with trade organisations in the tourism industry and that changes would not affect short-term rental properties outside the capital.

In Budapest's sixth district, 54 per cent of voters backed a ban on short-term rentals with 20.52% turnout in mid-September.