The European Commission has proposed a new Affordable Housing Act to support Member States and local authorities in addressing housing affordability and availability in areas facing the greatest pressures.
The proposal comes as access to affordable housing remains a growing concern across Europe. According to the latest Eurobarometer cited by the Commission, more than half of people living in cities consider housing an immediate and urgent problem where they live. The Commission also highlights the impact of the housing crisis on people’s ability to move for work or education, with essential workers and students increasingly struggling to afford to live in the communities they serve and study.
A common European framework for housing pressures
The Affordable Housing Act would establish the first common European framework for assessing housing-related measures that affect the EU Single Market. It would provide national, regional and local authorities with greater legal clarity when taking measures in areas experiencing housing stress, while leaving decisions on housing policy to the competent authorities.
Under the proposed framework, authorities choosing to restrict certain uses of housing would need to demonstrate how these activities are contributing to local housing pressures and ensure that measures are targeted, necessary and proportionate. This could include measures addressing short-term rentals, vacant dwellings or other forms of non-primary use of residential property.
For short-term rentals specifically, authorities would need to demonstrate a significant adverse effect on housing affordability or availability for at least three years before introducing restrictions, as well as showing that less restrictive measures would not be equally effective.
Increasing the supply of affordable housing
Alongside the legislative proposal, the Commission has issued a Recommendation on housing affordability and supply in areas under housing stress. It encourages authorities to increase housing supply where it is most needed, including by speeding up planning and permitting procedures for new construction, renovation and the repurposing of existing buildings.
The Commission also encourages authorities to develop Housing Acceleration Plans to concentrate efforts to increase housing supply in areas experiencing the greatest pressures. The measures form part of the broader European Affordable Housing Plan, which also includes action to mobilise investment in social and affordable housing and reduce the time and cost involved in building and renovating homes, as well as a Proposal for a Council recommendation on fighting housing exclusion to support vulnerable persons in precarious housing situations and to prevent and address homelessness.
For families, access to affordable and adequate housing is closely linked to their ability to establish a stable home and participate fully in society. The Commission’s proposal therefore represents an important development in the EU’s wider efforts to address housing affordability and availability, particularly in areas where housing pressures are greatest.
The legislative proposal will now be considered by the European Parliament and the Council under the ordinary legislative procedure.
Find more information about the Affordable Housing Act here.
