Solution to Europe's housing crisis is more supply

The solution to the European housing crisis would only come by addressing its main cause, which is the lack of supply. Despite the European Commission admitting so, the Affordable Housing Act presented today fails to address this problem, warns the EPP Housing spokeswoman Nikolina Brnjac MEP. "We had expected the proposal to be more ambitious in line with the EP report," she added.

The figures speak for themselves. Europe faces a deficit of 9.6 million homes, while the Commission calls for 2 million homes to be built every year by 2035. The real challenge, therefore, is to build and rehabilitate more homes. "In our parliamentary report, we pointed out that high construction costs, expensive land, planning restrictions and lengthy permitting procedures are standing in the way. We regret that the Commission presented only recommendations in this regard. Tackling short-term rentals and second homes through legislation does not address structural housing shortages in Europe. Disproportionate restrictions cannot solve the housing crisis," Borja Giménez Larraz continues.

"We are deeply concerned specifically about restrictions on secondary homes. Such an interventionist approach has had negative effects on employment and economic activity where it has been applied, including in France and Switzerland, while also raising serious concerns about the protection of the fundamental right to private property," Borja Giménez Larraz points out.

The EPP Group will therefore scrutinise whether the Commission's current plans really reduce red tape and increase supply. People do not need more paperwork. They need fair housing prices and removal of existing barriers, particularly by simplifying administrative procedures such as planning and permitting, which remain at the level of recommendations in this proposal. The proposed Affordable Housing Act aims to promote housing affordability by identifying areas of housing stress, based on publicly available data; however, the measures proposed, especially restrictions on second homes, will produce further imbalances. Europe needs houses, not more bureaucracy, and its problems cannot be solved by punishing our citizens through disproportionate measures relating to second properties, as proposed in the Act. 

The EPP Group therefore calls for the presentation of a Housing Simplification Package aimed at removing the administrative barriers that slow down construction, with its presentation currently foreseen for March 2027, to be brought forward as soon as possible. "Our young people cannot wait any longer for greater and faster investment in new housing and renovations. Europe needs to remove barriers, accelerate investment and build the homes that people need," Nikolina Brnjac concludes.

Find our EPP Group position paper on housing here.