Overview of the Publication
The report âHousing Policies in the EUâ was prepared by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) together with the Federal Ministry for Housing, Urban Development and Building (BMWSB). Lead authors include Rolf MĂŒller, Jonathan Franke, and a team of researchers from the Institute for Housing and the Environment (IWU) and TU Darmstadt. It presents a comprehensive analysis of housing policy, market structures, and challenges across the 28 EU member states (including the UK) based on expert surveys, statistical data, and caseâstudy research conducted between 2018 and 2022.
Scope and Methodology
The study combines a crossâcountry expert questionnaire, EUâSILC and Eurostat statistics, and inâdepth case studies from 20âplus national experts. It maps governance structures, housing stock age, tenure composition, and policy instruments. Data sources include national censuses, OECD affordableâhousing databases, and BBSR internal research. The analysis classifies tenure systems into four groups ranging from diversified (high rental share) to ownerâdominated (over 85 % ownerâoccupation).
Key Findings on Housing Stock
â Approximately 60 % of EU dwellings were built between the 1960s and 1980 s, often as prefabricated blocks, creating major retroâfit needs for energy efficiency and barrierâfree access. â Younger building periods (postâ2000) dominate in Group 3 and 4 countries, while Group 1 and 2 retain larger stocks of older housing. â Energyâefficiency upgrades and accessibility improvements are identified as the most pressing ageârelated deficiencies across the Union.
Tenure Composition and Diversity
â Ownerâoccupation remains the largest tenure, ranging from 56 % (Group 1) to 86 % (Group 4). â Marketârate rental shares vary from 25 % in diversified systems to just 4 % in strongly ownerâdominated markets. â Socialârental and cooperative rentals together account for 3 %â18 % of the housing stock, with the highest shares in Austria, Denmark, and Finland. â Mortgageâfinanced homeownership is highest in diversified markets (â64 %) and lowest in ownerâdominated markets (â12 %). â Incomeârelated sorting is strongest in diversified systems (ownerâoccupation 21 times higher among households above the 60 % median income) and weakest in ownerâdominant systems (â11 times).
Policy Instruments in Use
Four main instrument types are documented:
- Housing allowances â subjectâoriented subsidies used in all member states; coverage varies from 2 % to over 20 % of households (e.g., Finland, France).
- Subsidies for homeowners/homeâbuyers â credits, grants, tax concessions prevalent in 70 % of countries, especially in southern and eastern Europe.
- Subsidised housing â objectâoriented support for construction or refurbishment, dominant in Austria, Denmark, and Finland.
- Rentâprice regulation â employed mainly in western EU states (Germany, Sweden, Netherlands) and limited in the east. The report notes a trend toward expanding allowance schemes in Bulgaria, Greece, Ireland, and Luxembourg to address rising affordability pressures.
Drivers of Recent Policy Change
â Energy efficiency requirements are the most widely cited driver, influencing renovations, building codes, and financial incentives. â Urbanisation and immigration shape housing demand, especially in Denmark, Germany, Ireland, Latvia, Luxembourg, Malta, and Sweden. â Ageing societies and decreasing household sizes create demand for barrierâfree and smaller units, notably in Latvia, Poland, Portugal, and Spain. â The 2008 financial crisis prompted tighter lending rules, affecting homeâbuyer access in several countries.
Main Challenges Identified
- Ownerâoccupied sector: price spikes in urban areas, creditâaccess difficulties, and energy poverty affect over half of the states. Rural vacancy and declining prices are also reported.
- Rental sector: rent hikes in cities, chronic undersupply of affordable/social housing, and inadequate regulation in many eastern and southern members. Energy poverty and lack of barrierâfree units affect renters in Latvia, Portugal, and Slovenia.
- Homelessness and temporary housing: a lack of shelters for homeless persons is widespread, especially in eastern Europe; refugee accommodation shortages are serious in Croatia, Greece, and Latvia.
Implications for Sustainable Housing
The analysis underscores the EUâs need to harmonise energyâefficiency targets with the large stock of postâwar buildings, to scale up retroâfit financing, and to expand inclusive rental markets. Integrated policy approaches that combine supplyâside subsidies, demandâside allowances, and rentâcontrol mechanisms are recommended to achieve the dual goals of affordability and climateâneutral housing across diverse national contexts.
