MEPs adopt proposals to tackle Europe’s housing crisis

Short-term rentals should not threaten affordability of cities

Incentive-based tax systems to support low- and middle-income households

Enhance EU industrial sovereignty in the construction and renovation sector

Limit processing of planning permits to 60 days

On Monday, the Housing Committee adopted its final recommendations on the housing crisis in the EU, proposing solutions for decent, sustainable and affordable housing.

In its final report, adopted with 23 votes in favour, 6 votes against, and 4 abstentions, Parliament’s Special Committee on the Housing Crisis emphasises that millions of Europeans face precarious living conditions due to the housing crisis and calls for EU legislation to address the viability and cost of building new housing.

Improving living standards

To ensure decent housing, MEPs want specific earmarks of the funds included in the Commission’s Affordable Housing Plan to improve the energy performance of the residential buildings and to combat energy poverty. All new dwellings should meet quality standards on insulation, energy-efficiency, and air quality, MEPs say.

To improve living standards in overcrowded cities, MEPs want the upcoming law on short term rentals to strike a balance between facilitating tourism and housing affordability to ensure the proliferation of short-term rentals does not threaten affordability in cities.

MEPs also want an adequate share of public and social housing in EU cities to increase the affordability and supply of housing for vulnerable people.

Investments and fiscal aid

MEPs urge member states to introduce incentive-based tax systems to support low- and middle-income households, remove tax barriers (i.e. high registration fees) for first time buyers, and make long-term rentals more affordable.

The report calls for more EU investment in housing by better coordinating existing funding and by reallocating unused Recovery and Resilience Plan resources to support the construction and renovation of social, public cooperative, and affordable housing.

MEPs also say any revision of state aid rules should facilitate public investment in social housing, while respecting the diversity of national markets.

Faster and easier procedures

MEPs want the Commission to propose a housing simplification package to reduce red tape in the housing sector. They want simpler permitting procedures, for example through digital permit-granting procedures, and a deadline of 60 days when permits relate to sustainable and affordable housing proposals.

Industrial sovereignty in the construction and renovation sector

The EU must enhance its industrial sovereignty in the construction and renovation sector, MEPs say, urging the Commission to scale up innovative and sustainable products, reinforce the single market for raw materials, and include minimum ‘Made in EU’ origin requirements for components in EU co-financed projects.

Finally, MEPs want the upcoming European strategy for housing construction to focus on improving the working conditions of skilled workers through training and fair wages. They call for easier intra-EU labour mobility, improved mutual recognition of professional qualifications and, where necessary, the recruitment of skilled workers from third countries.

Quotes

Rapporteur of the housing report, Borja Giménez Larraz (EPP, ES), said: “The adoption of this report by the Housing Committee marks a significant step forward for the European Parliament. It reflects a broad and responsible consensus across political groups, grounded in pragmatism rather than ideology. The report places housing supply at the core of the response, recognising the need to enable the delivery of around 10 million additional homes across Europe. It also highlights the urgent need to support families and young people, who are bearing the brunt of the housing crisis. This balanced approach strengthens private property, provides legal certainty, creates the right framework for investment, and respects the diversity of national housing systems, while contributing to more affordable housing across Europe”.

Chair of the Housing committee, Irene Tinagli (S&D, IT), said: “Today’s strong endorsement of the report sends a clear message: we are ready to address housing as a social priority, strengthening cooperation between European, national and local authorities to tackle the crisis at its roots. The report sets out concrete measures across all dimensions of the housing challenge, including mobilising greater investment through EU, national and private funds, improving the quality, sustainability and habitability of homes, and addressing labour shortages and competitiveness in the construction sector. It reflects months of work and consultation by the Special Committee on the Housing Crisis, which will continue to monitor upcoming proposals and legislation to ensure that citizens’ interests remain at the core”.

Media briefing

On Tuesday at 17.00, Chair of the HOUS Committee Irene Tinagli (S&D, IT) and rapporteur Borja Giménez Larraz (EPP, ES) will participate in a media briefing in Strasbourg to discuss the report and answer questions from journalists. More details about the briefing here.

Background

On 18 December 2024, Parliament established a Special Committee on the Housing Crisis in the European Union to put forward solutions for decent, sustainable, and affordable housing for all EU citizens. It has been tasked with mapping housing needs, analysing existing housing policies across the EU and contributing to the future implementation of the EU’s affordable housing plan.