EU puts right-to-home plan in the pipeline, more funds from Cohesion policies and flexibility on state aid

The European Union (EU) is increasingly prioritizing sustainable housing as a critical issue amid rising housing costs and homelessness. This piece, published by EU News, outlines the EU's commitment to addressing the housing crisis, emphasizing the need for affordable and decent housing solutions. Margaritis Schinas, the outgoing Vice President of the European Commission, highlights that sustainable housing is at the forefront of the EU's agenda, with promises made by Ursula von der Leyen for a European plan for affordable housing.

Recent data indicates that housing prices in the EU have surged by an average of 52% from 2010 to the present, with rents rising by 25%. The European Federation of National Organizations Working with the Homeless (FEANTSA) estimated that approximately 700,000 individuals were homeless in 2020, marking a 70% increase from previous censuses. The OECD reported about 900,000 homeless people across 21 member states, underlining the urgent need for effective housing strategies.

The EU has appointed Dan Jørgensen, a Danish Social Democrat, to oversee Energy and Housing, signaling a focused approach to tackling the housing crisis. The Socialist Group in the European Parliament has called for significant investments aimed at protecting the most vulnerable segments of society from record housing costs. They advocate for reforms in EU state aid rules to facilitate investments in affordable housing, emphasizing that these funds should only be allocated for social rental housing rather than tourist rentals.

Schinas has proposed a targeted housing strategy that includes leveraging the European Investment Bank (EIB) to create a pan-European investment platform for affordable housing. The EU plans to allow member states to double their investments under Cohesion Policies specifically for affordable housing. Additionally, revising state aid rules is part of the strategy to activate measures that support housing development.

Dario Tamburrano, MEP from the 5 Star Movement, stresses the importance of ensuring that tenants, particularly the most vulnerable, are not adversely affected by rising rents or evictions following housing upgrades. Concerns have been raised about who will finance the necessary improvements to the residential housing stock. Paolo Borchia, head of the Lega’s delegation in Brussels, expressed skepticism regarding the EU’s sustainable housing policies and the feasibility of funding them.

The EU's housing plan is also linked to the objectives of the Green Deal, which aims to combat energy poverty. The initiative seeks to not only improve housing conditions but also ensure that environmental efficiency is achieved without burdening tenants with unsustainable costs.

In summary, the EU is taking significant steps to address the housing crisis through a comprehensive plan focused on sustainability and affordability. With the appointment of dedicated leadership and a commitment to financial reforms, the EU aims to create a more equitable housing landscape across the continent.