Housing crisis in the European Union with the aim of proposing solutions for decent, sustainable and affordable housing

‘considering that it functions as an anti-social and economically harmful de facto tax on heating; points out that including homes in emissions trading will lead to a rapid increase in housing costs, hitting low-income families hardest; opposes the ideological inflation of energy prices, which undermines the competitiveness of the European construction sector and pushes millions of citizens toward energy poverty;’

‘which, through mandatory renovations, imposes unrealistic financial burdens on homeowners ranging from EUR 15 000 to EUR 100 000 per building; stresses that mandating the zero-emission building standard drastically increases construction costs and discourages new investment, which is extremely irresponsible in the face of the housing crisis; maintains that owners and the free market must determine the pace of property modernisation;’

Text as a whole without the words: ‘reiterates, in this context, its call for a substantial dedicated budget of at least EUR 20 billion for the European Child Guarantee;’

‘Calls on the Commission to duly take into account Parliament’s position on the housing crisis; calls on the Commission to convene the first EU housing summit focused on concrete solutions; stresses that the European Affordable Housing Plan should prioritise actions to increase genuine affordability, and support Member States in delivering decent, sustainable and affordable homes for millions of Europeans; points out that housing is a Member State competence, but acknowledges that sectoral EU legislation may have an impact on the overall viability and costliness of building and on the renovation and repurposing of houses;’ ‘points out that housing is a Member State competence’ and ‘insists that there are EU initiatives that can bring about real added value to addressing the housing crisis, not least by tapping into the full potential of the single market in the construction sector, enabling greater investment via the use of EU funds, raising the standards of the quality of dwellings, enhancing evidence through data collection and sharing, supporting efforts and investment in upskilling and reskilling, facilitating the mobility of construction workers, and boosting the simplification of permitting; calls for the European Affordable Housing Plan to be aligned with the European Pillar of Social Rights, and for it to help tackle social inequalities, eradicate poverty in the EU, and promote social, economic and territorial cohesion and upward convergence;’

Text as a whole without the words: ‘large-scale’ and ‘abusive’ and ‘by reducing regulatory burdens, refraining from adding further administrative layers, eliminating unnecessary obstacles and red tape, and alleviating bottlenecks in local, national and EU legislation that undermine the competitiveness of the construction and renovation sectors,’, ‘calls for a joint regulatory audit by the Commission and the European Court of Auditors of EU legislation that may be hindering affordable housing supply; considers that such an audit should remedy the identified shortcomings;’ ‘recalls that evidence shows that price controls and state interventions can lead to unexpected outcomes, and any such measures should be targeted to limit distortions in the market; notes that such measures create uncertainty, discourage investment, and deter those who could help expand supply;’

‘by reducing regulatory burdens, refraining from adding further administrative layers, eliminating unnecessary obstacles and red tape, and alleviating bottlenecks in local, national and EU legislation that undermine the competitiveness of the construction and renovation sectors,’

‘recalls that evidence shows that price controls and state interventions can lead to unexpected outcomes, and any such measures should be targeted to limit distortions in the market; notes that such measures create uncertainty, discourage investment, and deter those who could help expand supply;’

‘urges competent public authorities to mobilise publicly owned land, review land zoning regulations and reclassify infrastructure-ready land for immediate development, to fast-track the delivery of affordable housing and cooperative, social and non-profit models; highlights that any land-use strategy must balance housing needs with high-quality construction standards;’

Text as a whole without the words: ‘including through measures such as introducing the principle of positive administrative silence for the issuance of building permits for new construction and renovation works,’, ‘calls on the Commission to urge the Member States to set out a goal to achieve housing permits within a deadline of 60 days to deliver decent, sustainable and affordable housing;’ ‘calls on the Member States to promote the delivery of housing’ and ‘priority’ and ‘allowing shorter procedures to be activated at national level and to introduce fast-track approval procedures’

‘including through measures such as introducing the principle of positive administrative silence for the issuance of building permits for new construction and renovation works,’

‘calls on the Commission to urge the Member States to set out a goal to achieve housing permits within a deadline of 60 days to deliver decent, sustainable and affordable housing;’ without the words: ‘housing permits within a deadline of 60 days to deliver’

‘calls on the Commission and the Member States to fully integrate the Commission’s Renovation Wave strategy into housing policies, including support schemes for private housing upgrades, ensuring that building renovation is not only focused on energy efficiency and decarbonisation, but also on social fairness and the expansion of affordable housing supply, improving quality of life, preventing disproportionate rent hikes during renovations and reducing long-term housing costs; stresses the importance of setting specific renovation earmarks within the forthcoming European Affordable Housing Plan and of contributing to improving the average energy performance levels of the residential housing sector and prioritising the worst performing buildings; calls on Member States facing high concentrations of low-efficiency, standardised multistorey buildings to develop mechanisms that enable the necessary renovation rates to meet EU targets; supports incentives for the renovation of dwellings in densely populated areas and advocates solutions that positively incentivise owners to put houses back on the market to make them available for long-term renting, particularly in pressured urban areas; underlines that when designing housing policies, competent authorities should be able to carry out a single and thorough environmental assessment, avoiding unnecessary duplications, and complete the necessary administrative and procedural steps for a given geographic area prior to the development of residential projects;’

Text as a whole without the words: ‘acknowledges that the Energy Performance of Buildings Directive imposes building requirements that could affect construction costs;’ do not have a negative impact on both rental and property markets; expresses concern about the calculation methods and inconsistencies in the energy labelling of residential buildings, which should’, ‘warns about the possible consequences of such labelling; acknowledges that the practical implementation of the Energy Efficiency Directive affects many construction companies and private owners;’ and ‘while respecting national priorities and available resources’

Text as a whole without the words: ‘acknowledges that the Energy Performance of Buildings Directive imposes building requirements that could affect construction costs;’ do not have a negative impact on both rental and property markets; expresses concern about the calculation methods and inconsistencies in the energy labelling of residential buildings, which should’, ‘warns about the possible consequences of such labelling; acknowledges that the practical implementation of the Energy Efficiency Directive affects many construction companies and private owners;’ and ‘while respecting national priorities and available resources’

‘warns about the possible consequences of such labelling; acknowledges that the practical implementation of the Energy Efficiency Directive affects many construction companies and private owners;’

‘do not have a negative impact on both rental and property markets; expresses concern about the calculation methods and inconsistencies in the energy labelling of residential buildings, which should’

Text as a whole without the words: ‘and incentive-based’ and ‘the Commission and’ and ‘new construction; calls, following a comprehensive impact assessment, for a reform of the VAT Directive that could allow for the application of a super-reduced value added tax rate to the supply and construction of housing, as part of a social policy, as defined by the Member States, to renovation and alteration, including demolition and reconstruction, and repairing of housing and private dwellings, and to the letting of immovable property for residential use;’ ‘respect fiscal neutrality’ and ‘be consistent with the EU’s objectives’

‘new construction; calls, following a comprehensive impact assessment, for a reform of the VAT Directive that could allow for the application of a super-reduced value added tax rate to the supply and construction of housing, as part of a social policy, as defined by the Member States, to renovation and alteration, including demolition and reconstruction, and repairing of housing and private dwellings, and to the letting of immovable property for residential use;’

Text as a whole without the words: ‘increasing mobility and’ and ‘any tax and’ and ‘incentives to’ and ‘housing’ and ‘market’ and ‘and market-distorting practices’

‘Encourages property owners to offer long-term and stable rental contracts, in order to enhance security of tenure and provide greater predictability for tenants; encourages the Member States to increase transparency in the private rental sector, based on the advertised prices, with the aim of improving housing conditions for tenants, and to strengthen national legislation in this regard; calls on the Member States to strengthen the protection of tenants’ rights, including by encouraging online rental platforms to provide information on average rent levels in the area, in order to ensure fair conditions and prevent disproportionate rent increases; calls on the Commission and the Member States to strengthen their commitment to ensuring equality and non-discrimination in the housing sector; calls for coordinated responses from social services to resolve tenant-owner conflicts and prevent further vulnerability of the parties involved, including small owners and vulnerable tenants in these circumstances; encourages the Member States to offer legal dispute settlement mechanisms for resolving housing-related disputes, for example, in cases of prolonged or abusive non-compliance with rental contracts that deprive owners of the legitimate use of their homes, as well as landlords who fail to comply with tenants obligations; calls on public authorities to protect families, in particular those with children, for example, by facilitating access to temporary shelter to address short-term vulnerability, with the protection of vulnerable families resting with competent authorities; underlines that local authorities need to identify and address cases of non-compliance with property, management and safety requirements, contributing to higher standards in the private rental market; condemns abusive housing practices that subject tenants in vulnerable situations to inadequate, unsafe or unsanitary conditions;’ without the words ‘long-term and’

‘Is concerned about the labour gap and the lack of competitiveness in the construction and renovation sectors, and the shortage of skilled workers; calls for the European Affordable Housing Plan to be connected to the EU Quality Jobs Roadmap; underlines that the housing crisis cannot be solved without a fully trained and mobile construction workforce; stresses the importance of improving the working conditions of construction workers in order to address labour shortages and attract a skilled workforce;’

‘underlines, therefore, the need to guarantee fair wages, stable employment, safe working conditions, improved contracts, and health and safety standards; stresses that workers’ rights should be respected and enforced, and encourages effective monitoring, including the use of digital tools and company registers to detect fraud; calls for national measures to prevent accidents at construction sites; calls for strengthening the implementation of the EU occupational safety and health acquis; calls for the Member States to improve collective bargaining for workers in the construction and renovation sectors;’

‘Encourages the Commission and the Member States to ensure that legal labour migrants and seasonal workers whose accommodation is provided through their employer have access to decent, sustainable and affordable housing; stresses that no worker should be forced to live in overcrowded or poor conditions;’ without the words: ‘legal’ and ‘whose accommodation is provided through their employer’

‘calls for strengthened monitoring in this regard; calls on the Commission and the Member States to analyse the social and territorial effects of concentrated housing for labour migrants and seasonal workers; stresses the need to assess whether such spatial segregation undermines social cohesion and the integration of communities; calls on the Member States to collect data at regional and local level on the location and conditions of employer-provided accommodation; calls for a review of the European Labour Authority for more effective cross-border enforcement;’ without the words: ‘calls on the Commission and the Member States to analyse the social and territorial effects of concentrated housing for labour migrants and seasonal workers;’ and ‘calls for a review of the European Labour Authority for more effective cross-border enforcement;’

‘calls for strengthened monitoring in this regard; calls on the Commission and the Member States to analyse the social and territorial effects of concentrated housing for labour migrants and seasonal workers; stresses the need to assess whether such spatial segregation undermines social cohesion and the integration of communities; calls on the Member States to collect data at regional and local level on the location and conditions of employer-provided accommodation; calls for a review of the European Labour Authority for more effective cross-border enforcement;’ without the words: ‘calls on the Commission and the Member States to analyse the social and territorial effects of concentrated housing for labour migrants and seasonal workers;’ and ‘calls for a review of the European Labour Authority for more effective cross-border enforcement;’

Text as a whole without the words: ‘calls on public authorities to effectively regulate subcontracting, ensuring that public funds support companies that provide high-quality social working conditions and respect industry standards; calls on the Commission to reflect on the inclusion of social and environmental standards in the upcoming revision of the Public Procurement Directive and to ensure transparency regarding subcontractors and the extent of subcontracted work;’

‘calls on public authorities to effectively regulate subcontracting, ensuring that public funds support companies that provide high-quality social working conditions and respect industry standards; calls on the Commission to reflect on the inclusion of social and environmental standards in the upcoming revision of the Public Procurement Directive and to ensure transparency regarding subcontractors and the extent of subcontracted work;’

‘calls on the Commission to reflect on the inclusion of social and environmental standards in the upcoming revision of the Public Procurement Directive and to ensure transparency regarding subcontractors and the extent of subcontracted work;’

Text as a whole without the words: ‘can’ and ‘underlines the importance of favouring projects aimed at enhancing inclusive neighbourhoods with opportunities for all;’ ‘acknowledges the maintenance costs of public housing stock, and therefore encourages efficient and effective processes aimed at reducing the budgetary burden for public administrations and citizens;’

Text as a whole without the words: ‘may’ and ‘the right to private property ownership, legal certainty for owners, and’, ‘considers that certain measures could help urban centres regain their residential functions, such as adequate and proportionate licensing systems, increased transparency regarding large-scale foreign property acquisitions in order to monitor housing availability, authorisations from neighbours’ associations or the main owner, or safety, quality and consumer protection standards, ensuring that those policies are proportionate and tailored to the specific circumstances;’ underlines that measures are needed to safeguard housing for residents and preserve the diversity and vitality of urban communities;

‘considers that certain measures could help urban centres regain their residential functions, such as adequate and proportionate licensing systems, increased transparency regarding large-scale foreign property acquisitions in order to monitor housing availability, authorisations from neighbours’ associations or the main owner, or safety, quality and consumer protection standards, ensuring that those policies are proportionate and tailored to the specific circumstances; underlines that measures are needed to safeguard housing for residents and preserve the diversity and vitality of urban communities;’

Text as a whole without the words: ‘the mobilisation of private investment, as it is important to complement’ and ‘and as the public sector alone cannot address the current lack of liquidity in the market’ and ‘the private sector’ and ‘and listed real estate companies’ and ‘notes that market-based housing solutions remain an effective way to sustainably expand supply and highlights the importance of an investment-friendly regulatory environment in this regard;’ ‘calls for the completion of the Savings and Investments Union as a way to enhance the availability of private capital across borders;’ and ‘calls on the Member States to explore dedicated housing investment vehicles to channel private savings into affordable housing projects;

‘notes that market-based housing solutions remain an effective way to sustainably expand supply and highlights the importance of an investment-friendly regulatory environment in this regard;’

‘notes that market-based housing solutions remain an effective way to sustainably expand supply and highlights the importance of an investment-friendly regulatory environment in this regard;’

‘notes that the Capital Requirements Directive allows Member States to introduce systemic risk buffers for certain exposures and that some opted to introduce systemic risk buffers for certain exposures secured by residential property, which increase the financing costs for commercial real estate; calls on the European Banking Authority to make full use of the flexibilities under its guidelines to support mortgages on residential property, while ensuring financial stability; calls on the Member States to carefully assess the appropriateness of the level of systemic risk buffers for exposures collateralised by residential property; supports the possibility provided in the Capital Requirements Regulation to allow for preferential prudential treatment of exposures relating to land acquisition, development and construction, thereby facilitating access to financing for housing development;’

‘welcomes, in this regard, the review of the EU securitisation framework presented by the Commission on 17 June 2025 with the aim of freeing up banks’ balance sheets and enhancing banks’ lending capacity; calls on the Commission to assess the impact of the Capital Requirements Regulation on small construction companies, in order to ensure that loans for residential projects are dealt with in a proportional manner, reflecting the fact that lower systemic risk projects are often pre-sold, insured or guaranteed by public authorities;’

Text as a whole without the words: ‘underlines the role of the Stability and Growth Pact in ensuring financial stability in the EU, which is a prerequisite for the proliferation of housing;’

Text as a whole without the words: ‘recommends a stronger InvestEU programme for the 2028-2034 period to increase the volume of guarantees backed by the EU budget for decent, sustainable and affordable housing projects;’ and ‘further explore the added value of creating a European housing agency,’

‘recommends a stronger InvestEU programme for the 2028-2034 period to increase the volume of guarantees backed by the EU budget for decent, sustainable and affordable housing projects;’

Text as a whole without the words: ‘urges the Member States to adopt multi-annual social housing delivery targets, including in relation to infrastructure and services;’

‘Calls on the Commission to analyse housing price dynamics, including available evidence of potentially abusive speculation, and, on the basis of this analysis, to call on the Member States for possible appropriate measures;’ without the words: ‘potentially abusive’

‘stresses the importance of safeguarding financial stability and ensuring that financial instruments contribute to ensuring decent, sustainable and affordable housing for all; calls on the Commission and the Member States to enhance transparency in real estate transactions, including through improved data collection’

‘and possible EU-level tools; calls on the Commission and the Member States to exchange data and best practice on combating abusive financialisation practices and speculative purchases, reducing the likelihood of destabilising local housing markets;’ without the word: ‘abusive’

‘calls on the Member States to adopt measures to incentivise bringing vacant and derelict homes back into use, as this is essential to increasing supply, safeguarding affordability, and revitalising communities; stresses that public investment in housing should serve the public interest and deliver long-term value; welcomes public ownership models where housing remains publicly managed,’

‘which could be useful in certain contexts to prevent abusive financialisation practices,’ without the words: ‘could be useful in certain contexts to’ and ‘abusive’

‘underlining that housing projects that pass into private hands are also legitimate;’ ‘stresses that Member States should be free to choose how to manage these projects in line with their national policies;’

Text as a whole without the words: ‘recognises that private home savings funds are a practical and effective tool for individuals and families to invest in housing and encourage greater accessibility to mortgage funding; calls on the Member States to facilitate the implementation and promotion of these measures as part of broader efforts to address the housing crisis;’ and ‘with a dedicated budget of at least EUR 20 billion’

‘recognises that private home savings funds are a practical and effective tool for individuals and families to invest in housing and encourage greater accessibility to mortgage funding; calls on the Member States to facilitate the implementation and promotion of these measures as part of broader efforts to address the housing crisis;’

‘recognises that private home savings funds are a practical and effective tool for individuals and families to invest in housing and encourage greater accessibility to mortgage funding; calls on the Member States to facilitate the implementation and promotion of these measures as part of broader efforts to address the housing crisis;’

Text as a whole without the words: ‘recalls that action on homelessness is primarily a competence of the Member States, while the EU should support and coordinate efforts;’ and ‘calls on the Member States to adopt national targets to prevent the eviction of children in cases where there is a clear risk of homelessness’

Text as a whole without the words: ‘whereas simplifying and streamlining the complex set of rules in order to speed up housing construction, repurposing and renovation across Europe is crucial for the provision of decent, sustainable and affordable housing;’ and ‘where needed’

‘whereas simplifying and streamlining the complex set of rules in order to speed up housing construction, repurposing and renovation across Europe is crucial for the provision of decent, sustainable and affordable housing;’

‘whereas 10.6 % of EU citizens reported being unable to adequately heat their homes in 2023; whereas key EU legislation to achieve long-term financial stability, such as the Energy Performance of Buildings Directive and the Energy Efficiency Directive, sets technical requirements regarding sustainability, energy efficiency, and safety; whereas the Energy Efficiency Directive, which was revised in 2023, raises the EU energy efficiency target, requiring a further 11.7 % reduction in energy consumption by 2030;’ without the words: ‘whereas key EU legislation to achieve long-term financial stability, such as the Energy Performance of Buildings Directive and the Energy Efficiency Directive, sets technical requirements regarding sustainability, energy efficiency, and safety;’

‘whereas key EU legislation to achieve long-term financial stability, such as the Energy Performance of Buildings Directive and the Energy Efficiency Directive, sets technical requirements regarding sustainability, energy efficiency, and safety;’

‘whereas energy poverty is an issue affecting all Member States and has a disproportionate impact on vulnerable families, including children and elderly, particularly in large, ageing housing blocks with low energy efficiency that result in high heating costs; whereas 14.5 million children in the EU lived in homes with leaks, damp or mould in 2023 and 154 000 Europeans die prematurely every year due to poor indoor air quality; whereas 75 % of the EU’s building stock has a poor energy performance rating; whereas energy-efficient buildings powered by renewable energy could reduce energy bills, improve health and well-being, and minimise long-term operational costs; whereas buildings account for 40 % of final energy consumption in the EU; whereas all EU countries should have established a draft national building renovation plan by 31 December 2025; whereas the plans will provide essential information for housing policies, including an overview of the national building stock, investment needs and financing sources; whereas the speed and level of renovations is still unsatisfactory; whereas energy-efficient renovation is unattractive for older people, who have the highest rate of ownership of old homes;’

Text as a whole without the words: ‘whereas private property is threatened by illegal occupation, known as squatting, and systematic non-payment of rent phenomena, which harms communities and particularly small property owners, forcing them to exit the market and to rightfully recover their property, thereby reducing the available supply and contributing to rising prices; whereas illegally staying in a property undermines the EU Charter and constitutes a violation of the rule of law;’

Text as a whole without the words: ‘whereas forced evictions are defined as the permanent or temporary removal, against their will, of individuals, families or communities from the homes or land they occupy, without the provision of, and access to, appropriate forms of legal or other protection;’

Text as a whole without the words: ‘and relatively high levels of temporary employment and self-employment associated with long subcontracting chains and the cyclical and project-based nature of employment in the sector’

Text as a whole without the words: ‘whereas labour migrants and seasonal workers make a contribution to key sectors across the EU, yet many are housed in overcrowded or poor accommodation;’ and ‘whereas the responsibility of the private sector to end these types of practices must be clearly defined;’

‘whereas access to housing finance is essential to meet housing needs, as well as to support construction, renovation and repurposing, in particular for the approximately 3.8 million SMEs active in the EU construction sector; whereas improving access to credit, without compromising on macroeconomic prudence, should be part of a balanced response to the housing crisis; whereas access to credit for construction has significantly tightened since 2008, with banks reporting declining loan demands across the EU, with mortgage interest rates having increased, thus limiting the development of affordable housing and the sustainable renovation of existing stock; whereas the entire prudential framework should be aimed primarily at ensuring financial stability, focusing on sound banking criteria, and preventing housing bubbles; whereas private developers can play an important role in delivering diverse housing solutions efficiently and sustainably, and at a price that people can afford; whereas crowding-in private investment therefore could be helpful; whereas the renovation, conversion and extension of the existing housing stock is a cost-effective and rapid solution to the housing crisis; whereas, according to the European Central Bank, the last 15 years have seen increased divergence in residential real estate market access, with low- and middle- income households facing greater difficulties in obtaining credit for home purchases; whereas access to loans for purchasing a home can be challenging, specifically for young families and in rural areas, and access to long-term, affordable financing is therefore needed; whereas the regulation of mortgage markets can play a key role in supporting housing affordability;’

‘whereas the linkage between real estate trusts and funds, banks and other institutional investors, may pose risks to financial stability; whereas such interlinkages should be subject to transparent reporting;’

‘whereas social and affordable housing is financed by national, regional, and local authorities, with the EU playing a key role through funding instruments, cooperation facilitation and best practice exchanges among Member States and cities; whereas investment in social and affordable housing stock has declined dramatically since the 2008 financial crisis; whereas the proportion of public, cooperative and social housing has been steadily declining; whereas just 7 % of the EU’s Recovery and Resilience Facility fund in 2024 was spent on social housing and other social infrastructure; whereas, in the implementation of the RRF, shortcomings have been identified with regard to transparency and clarity in the definition and monitoring of criteria at national level; whereas national promotional banks and institutions (NPBIs) play an essential role in financing decent, affordable and sustainable housing, leveraging private investment and strengthening the financing framework at national and regional level; whereas NPBIs have promoted more than 380 000 dwellings across the EU and committed close to EUR 50 billion in financing to the housing sector in 2023 alone, thus strongly complementing EU-level initiatives with their long-lasting expertise and experience;’ without the words: ‘with the EU playing a key role through funding instruments, cooperation facilitation and best practice exchanges among Member States and cities’

Text as a whole without the words: ‘whereas the Commission and Member States should adopt multi-year policies aimed at establishing national stocks of affordable and sustainable housing as well as promoting renovations that lower household costs;’ ‘respecting worker’s rights and collective agreements’, ‘whereas the reallocation of unspent Just Transition Fund money could support the construction of housing, as the Commission has encouraged Member States to channel unspent funds to affordable, sustainable and decent housing;’

‘whereas the Commission and Member States should adopt multi-year policies aimed at establishing national stocks of affordable and sustainable housing as well as promoting renovations that lower household costs;’

‘whereas the reallocation of unspent Just Transition Fund money could support the construction of housing, as the Commission has encouraged Member States to channel unspent funds to affordable, sustainable and decent housing;’

‘whereas in many Member States, rents are rising faster than incomes, waiting lists for public housing are growing, and access to decent, sustainable and affordable housing is becoming out of reach for low- and middle-income households; whereas the loss of purchasing power within low- and middle-income households and rising housing costs undermine the possibility of their acquiring or renting affordable housing, with broader demographic and socio-economic consequences, such as increased levels of social exclusion; whereas housing transactions declined in 2023 compared to 2022 in 13 of the 16 Member States for which data is available, marking a second consecutive year of falling sales; whereas addressing not only the supply but also the strategic location of affordable housing, particularly near employment centres, public services and sustainable transport networks, is essential to reduce commuting burdens and enhance quality of life;’

‘whereas an inclusive housing policy should address these inequalities and ensure that everyone, regardless of their background or status, has access to decent, sustainable and affordable housing;’