EU Moves to Tackle Housing Crisis

The European Parliament’s Housing Committee has recently endorsed a set of proposals aimed at addressing the escalating housing crisis across the European Union. The committee’s final recommendations focus on ensuring affordable, sustainable, and decent housing for all EU citizens.

On Monday, MEPs voted to adopt the comprehensive housing report, which passed with 23 votes in favor, 6 against, and 4 abstentions. The report outlines a multifaceted approach to the crisis, emphasizing the need for legislative action to make housing both viable and cost-effective. Key proposals include the regulation of short-term rentals to prevent them from undermining the affordability of housing in urban areas, the introduction of incentive-based tax systems to aid low- and middle-income families, and enhancing EU industrial sovereignty in the construction and renovation sectors.

The proposals also call for a reduction in bureaucratic hurdles by limiting the processing time for planning permits to 60 days, specifically for sustainable housing projects. Furthermore, the report advocates for significant EU investment in housing, urging the reallocation of unused funds from the Recovery and Resilience Plan to support the construction and renovation of social housing.

The committee’s report was developed after extensive consultations and reflects a pragmatic consensus across political groups in the Parliament. It aims to facilitate the construction of approximately 10 million additional homes across Europe to alleviate the housing shortage. The upcoming European housing strategy will also focus on improving labor conditions in the construction sector and ensuring the availability of skilled workers.

A media briefing is scheduled for Tuesday in Strasbourg, where Irene Tinagli, Chair of the Housing Committee, and the report’s rapporteur, Borja Giménez Larraz, will further discuss these developments and answer questions from journalists.