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Learn moreRICS Position on the Future of Affordable Housing in Europe
Context and Publisher
The Royal Institution of Chartered Surveyors (RICS) is a leading global organization that sets and regulates standards for professionals in property, land, construction, and sustainability. This position paper addresses the critical issue of affordable housing in Europe, highlighting the complexities and challenges faced in the sector. It emphasizes the necessity for a coordinated approach to deliver sustainable and affordable homes across the continent.
Current Housing Landscape
Housing is an essential asset class that significantly influences economies and societies. In 2023, 69% of EU households owned their homes, while 31% lived in rented housing, with notable variations across countries. For instance, Germany has a higher rental rate (52%), contrasting with other EU nations where homeownership predominates. Furthermore, 8.8% of the EU population spent over 40% of their disposable income on housing, with Greece facing the highest burden at 28.5%. This situation underscores the urgent need for affordable housing solutions as many people are trapped in unsuitable living conditions.
Sustainable Development Challenges
The current housing market lacks a unified approach that integrates social and environmental objectives. The paper highlights that many existing homes are of low quality, and new developments are often unaffordable. To tackle these challenges, RICS advocates for enhanced public-private partnerships, streamlined regulations, and innovative financing mechanisms to mobilize capital for affordable housing.
Recommendations for Policymakers
The paper outlines several key recommendations, including:
- Definitions and Data: Establish a European housing data observatory to standardize definitions of affordable and social housing, ensuring reliable data collection to guide policy.
- Standards: Adopt international cost management and carbon assessment standards to improve transparency and accountability in housing delivery.
- Financing Mechanisms: Develop stable subsidy schemes and expand green financing options to facilitate investment in affordable housing.
- Sustainability and Innovation: Promote the retrofitting of existing buildings and innovative housing solutions, such as micro-living and modular construction, while updating regulations to support these initiatives.
- Regulatory Reforms: Streamline planning and permitting processes to reduce delays in housing delivery, ensuring a balance between environmental protections and housing needs.
- Labour Force Development: Address labour shortages in the construction sector through EU-wide retraining programs and recognition of foreign qualifications.
- Market Pressures: Implement measures to mitigate speculative buying and short-term rentals that drive up housing costs, ensuring more homes are available for long-term residents.
Conclusion
Affordable housing in Europe is confronted by numerous interconnected challenges, including financial constraints, regulatory hurdles, and market distortions. A comprehensive and coordinated strategy is essential to enhance both short-term affordability and long-term sustainability in housing. RICS is committed to leveraging its expertise to support the development of effective policies that balance social housing needs with economic viability.