Airbnb letter: Tighter short-term rental rules serve to ease Budapest housing problem, says ministry

The National Economy Ministry responded to “misleading” points made in an open letter from Airbnb to the head of the portfolio, Márton Nagy, in a statement issued on Thursday.

The government recently announced an increase in the annual room tax on short-term rentals in the capital from HUF 38,400 to HUF 150,000 and rolled out a two-year moratorium on the registration of new Airbnb-type accommodations from the start of 2025 in the interests of “managing the housing crisis” in Budapest, the ministry noted. (Related: Airbnb pens open letter to Hungarian economy minister)

Photo: FB/Soproni Tamás

Making a case for the measures, the ministry said the number of short-term rentals in the capital had climbed by 80pc between 2020 and 2024 and now stood close to 26,000. Those flats account for over 40pc of the guest nights registered in the capital, well over the 28pc average for capitals in the region, it added.

Parallel with the rise in homestays, rents have climbed over 40pc since the pandemic and now eat up as much as 50pc-60pc of occupants’ monthly incomes, the ministry said. Short-term rentals also “restrict the right to private life” of local residents, especially in the capital’s central districts, it added.

The ministry noted that the new rules apply only to short-term rentals in the capital.

Public consultation for new home renovation grants in small settlements

The National Economy Ministry and the Culture and Innovation Ministry on Thursday announced the start of public consultations on a programme to support home renovations in Hungary’s smallest settlements.

Under the programme, to launch from the start of next year, families with children in settlements with fewer than 5,000 residents may apply for up to HUF 3m of grant money to cover half of the cost of home renovation projects.

Around 400,000 families in some 2,900 settlements are eligible for participation in the scheme.

Ingatlan.com: Home prices rise 10pc in October

Home prices in Hungary rose 10pc year-on-year in October, listings site ingatlan.com said on Thursday.

Home prices in the capital came close to HUF 1,100,000/sqm, with new homes going for HUF 1,350,000/sqm and resale homes for HUF 1,080,000, on average.

In Debrecen, Hungary’s second-biggest city, home prices averaged HUF 853,000/sqm.

Read also:

• Airbnb pens open letter to Hungarian economy minister
• Shocking: Stunning rise in Hungary’s housing prices outpaces all of Europe