The municipality of Amsterdam may not prohibit residents in the center of the city from renting out their place of residence to tourists. That is the Council of State decided on Wednesday. According to the Council, the measure taken by the municipality is “disproportionate” and the municipality should have first investigated whether “less far-reaching measures” would be enough.
In the summer of 2020, the municipality of Amsterdam wanted to prohibit residents of the Red Light District and the Grachtengordel-Zuid from renting out their living quarters to tourists. This rule should lead to less ‘pressure from tourists’ and improve the quality of life in the city. The Vereniging Amsterdam Gastvrij, an interest group for private vacation rentals and B&Bs, filed a lawsuit. The association pointed out to the municipality that the ban was not allowed by law. The court of Amsterdam ruled in favor of the interest group in March 2021, but the municipality of Amsterdam appealed.
So that was in vain. According to the Council of State, the ban is “disproportionate”, because it is “not necessary and appropriate” to achieve the goal, less pressure from tourists. “Furthermore, the ban has direct financial consequences for homeowners in the city center, as a result of which the designation decision leads to discrimination.”