French lawmakers on Thursday backed a bill aimed at increasing the regulation of tourist accommodation such as Airbnb to combat the shortage of affordable housing.

The National Assembly lower house adopted the legislation by a large majority, with the far right voting against it. 

The bill - the result of a compromise between the two houses of French parliament - had been unanimously approved by the upper house Senate on Tuesday.

The legislation, which has been in the works since April 2023, aims to slash tax breaks for tourist properties in a bid to curb short-term rentals amid shortages of affordable housing.

The aim is to regulate short-term rentals, an activity that is now "spiralling out of control", said Annaïg Le Meur, one of the lawmakers behind the bill.

The boom in Airbnb-type rentals has contributed to "encouraging speculation" and "further complicating access to conventional housing", she said.

"This is a bill for the French, for all those who are looking for long-term accommodation and who are unable to find it," Housing Minister Valerie Letard said in the Senate.

The tax allowance for furnished tourist accommodation would fall to 50 per cent from 71 per cent, with a cap lowered to €77,700.

The legislation would slash tax breaks for non-classified tourist properties to 30 per cent from 50 per cent, with a cap of €15,000.

The legislation also gives mayors a "toolbox" to regulate short-term accommodation, Inaki Echaniz, co-author of the bill, said in a statement.

Local authorities will also be able to set quotas for furnished tourist accommodation.