The first plan for more affordable housing. Measures announced by the EU to combat rising prices and rents

The European Commission has addressed one of the most pressing needs of European citizens: access to affordable, sustainable and good quality housing, through the first “European Affordable Housing Plan” presented on Tuesday, the Community Executive announced in a press release.

With an average increase in house prices of more than 60% and rents of more than 20% over the past ten years, millions of Europeans are struggling to find a home they can afford. Affecting labor mobility, access to education and family formation, the housing crisis affects both the competitiveness of the EU economy and our social cohesion.

The Commission has therefore announced that it will support Member States, regions and cities by taking action where this can bring added value at EU level.

This plan focuses on increasing housing supply, stimulating investments and reforms, addressing the problem of short-term rentals in areas with housing difficulties and supporting the most affected people, according to Agerpres.

“Housing First”

“This plan sets out concrete actions to make housing more affordable by triggering investment, regulating short-term rentals, cutting red tape and supporting the most affected people in our society. Housing is not just a commodity. It is a fundamental right. We must mobilize every euro and do everything we can to ensure that in Europe everyone can afford a decent place to call home,” said the Energy Commissioner and housing, Dan Jorgensen.

The plan proposes measures for a more productive and innovative construction and renovation sector, which will address the mismatch between housing demand and supply through the European Housing Strategy.

The package also includes a Council Communication and Recommendation on the New European Bauhaus (NBE). As an enabler of clean transition, innovation and the bioeconomy, NBE supports sustainable, affordable and high-quality projects – mainly in the built environment.

Revised EU state aid rules will make it easier for Member States to provide financial support for affordable housing as well as social housing. The Commission will work with national, regional and local authorities to simplify rules and procedures that restrict housing supply, with a particular focus on planning and authorisation. A new legislative initiative on short-term lettings will support areas under housing stress.

To date, the Commission has mobilized significant investment – ​​€43 billion – in housing and will continue to do so under the next long-term EU budget.

The Community Executive is also developing a new pan-European investment platform in cooperation with the European Investment Bank, national and regional promotional banks and other international financial institutions.

According to the Commission, by tackling the underlying causes of the crisis in a comprehensive way, this plan will be particularly beneficial for those most affected: young people, students, essential workers, people on low incomes and other disadvantaged groups. The Commission will mobilize new investment in student and social housing and help Member States to implement better solutions for homelessness, based on 'housing first' principles.

The European Affordable Housing Plan is the first step to support Member States to provide more affordable, sustainable and quality housing across Europe. The Commission will now focus on implementation. A new European Housing Alliance between member states, cities, regions, EU institutions, housing providers and associations, social partners, industry and civil society will drive the implementation of the plan, according to the announcement on Tuesday.

Also, the Community Executive will present a report on the progress made before the end of this mandate.