EU seeks a way to address the housing crisis

Preferential loans to first-house buyers, greater social housing support and the engagement of the European Investment Bank in the financing of real property construction are 1 of the key proposals adopted by the European Parliament for a study on the housing crisis in the EU. Euro MPs point out that rising prices and limited housing availability are a major problem for young people and families across Europe.

– For the first time in the past of the European Parliament, we have adopted a study on housing. It is very good that the European Commission and the European Parliament have dealt with the issue of the housing crisis, which concerns practically all country, not only Poland – emphasises Joanna Scheering-Wielgus, associate of the European Parliament of the fresh Left (S&D) in an interview with Newseria.

On 10 March the European Parliament adopted recommendations on housing in the EU by 367 votes. This is simply a study summarising the work of the EU peculiar Committee on the Housing Crisis (HOUS), in which the authors stress that millions of Europeans face uncertain surviving conditions due to the housing crisis and call on the Union authorities to take initiatives to address rising prices and insufficient housing.

EU data shows that housing prices have increased by more than 60% on average over the last decade and rents by almost 30%, importantly limiting access to property especially for young people. In addition, in any associate States, especially in confederate and east Europe, overcrowding of homes and their failure to meet the needs of residents are the problem, which is exacerbated by the scale of the crisis.

– Young people do not have access to apartments that are simply besides expensive. Through low interest rates, they have actually become an investment tool, but only for those who have money – This is Marlena Maląg, the Euro MP of Law and Justice. – If young people have a job, dreams, want to start a family, but the flat is inaccessible, in most cases they will not decide to start a household and the spiral turns on.

The European Central Bank reports that the differences in access to the housing marketplace have increased over the past 15 years, and that the entry into the property marketplace is moving to an increasingly later phase of life. As a result, in any associate States, almost 70% of those aged 18-34 have no alternate but to proceed surviving with their parents.

The scale of problems translates into the request for systemic changes on the part of the associate States and greater engagement of the EU institutions. The study points out, among another things, the request to introduce financial instruments to increase the availability of housing, the improvement of social and municipal construction, the creation of a legal framework to facilitate the implementation of these solutions in individual countries and the acceleration of investment processes, including by simplifying administrative procedures and reducing the time allowed for construction.

– Among another things, the European Parliament's study proposes solutions for countries to introduce rules to let for preferential housing. specified reliefs and ideas are already in France or Spain – says Joanna Scheering-Wielgus, active in the work of the HOUS committee.

The European Parliament besides draws attention to the request to increase housing supply and the improvement of rental construction, including public funding. Social housing presently accounts for only 6-7 percent of EU housing resources on average. specified a low share limits the anticipation of supporting people in the housing crisis, which translates into a sustained advanced level of homelessness.

The study places a large deal of emphasis on homeless people. For the first time, the European Parliament speaks so loudly about this, due to the fact that around 1.3 million people in Europe are homeless, and in Poland about 33 000. That's something we should be ashamed of. This is what the European Parliament is paying attention to and wants to put this in order - says Euro MP fresh Left.

An crucial part of the recommendations is besides to increase the scale of financing for housing investments. The analysis cited in EU papers shows that the investment gap in affordable housing in Europe is as advanced as a fewer 100 billion euros a year. The European Parliament so highlights the request for greater engagement of the EU institutions, including the European Investment Bank, in this area and the creation of a framework to facilitate the implementation of fresh support instruments by associate States. The recommendations besides included taxation incentives, including the facilitation of first flat buyers and solutions to increase long-term rental availability.

Among the challenges identified are the limited supply of housing and the expanding force from short-term rental, which in many European cities – especially popular among tourists – limits the availability of accommodation for residents. According to the HOUS Committee, a greater balance is needed between the improvement of tourism and the needs of the housing marketplace – only in 2024, guests spent 854.1 million nights in specified facilities in the EU.

– The study besides draws attention to short-term rental and ownership. There are countries of the European Union where the law in force makes the owner of the apartment, if he rents it to someone, he may never see it again. Marlena Maląg speaking.

The increasing investment costs besides affect the housing market. This concerns both material and labour prices and regulatory requirements, including energy efficiency of buildings.

– Unfortunately, in any ways, the Union itself has caused this situation on the housing marketplace by its uncompetitiveness and the introduced rules. If we are talking about a building directive that talks about how buildings should be adapted and which year, these apartments will be even more expensive. That is why these actions are contradictory: on the 1 hand, we are talking about beautiful ideas and, on the another hand, we are paying attention to what is the European Commission's precedence and what makes us not actually moving forward - explains the Euro MP of the Law and stresses that this has caused the European Conservatives and Reformists group to abstain in the vote on the HOUS report. – In this report, as usual, there's inactive a mention to green madness beyond good things.

Politicians point out that housing policy remains within the competence of the associate States and that the study adopted is of a advice nature and does not indicate 1 common model of action for the full of the European Union. On the another hand, the scale of the problem is so serious that it requires intervention at EU level.

– After voting in the European Parliament, we know that the Commission wants to make a fresh legal framework to force something, but in a affirmative way, national countries, so that these changes are introduced. We know that the housing crisis is everywhere, we know that we request to thin over it and make changes. Good thing we're going that way. – judged by Joanna Scheering-Wielgus. – Step by step, we will strive for, first, money to be found for young people to have loans on preferential terms and to combat people's homelessness in the Union.

"The European Union is not giving concrete solutions to how to make more housing. I see this more as a discussion and a affirmative announcement that there should be a programme related to affordable housing and that the solutions that associate States are preparing should increase the availability of housing Marlena Maląg speaking.

As he emphasises, Poland has the task of defining housing needs and preparing appropriate solutions.

– The programmes that we are about to present, going to the elections in 2027, will be based on the operation of Bank Gospodarstwa Krajowego, due to the fact that this is an institution that in cooperation with local governments can make real programs helping young people to get their own apartment – announces Euro MP PiS.