Today, the EU’s first-ever European Affordable Housing Plan, the European Commission is taking a historic step in redefining the relationship between housing policies and the European Union.

As the Plan itself notes, at a time when “a palpable feeling of injustice is growing across Europe due to the sheer unaffordability and unavailability of housing”, the initiative signals an attempt to generate a political shift. While housing remains first and foremost a competence of Member States, regions and cities, the EU is recognising that the scale of the crisis demands a stronger, more coordinated European response that supports, and amplifies national and local action.

Marco Corradi, President of Housing Europe, said:

“This plan is a welcome first step to put in place a framework that allows us to join forces to address one of the most pressing challenges facing Europe. Our continent is made up of very diverse territories with very different housing realities. Success of the plan will be determined by capacity at local level to meet those needs. Affordability should be our goal and the most affordable housing is public, cooperative, and social housing. These homes a vital part of any sustainable answer to the housing crisis as they increase supply, not speculation, and have a central role to play alongside national and local authorities.”

The Commission’s initiative aims to boost affordable housing supply, mobilise investment, enable immediate support while introducing structural reforms, and prioritise the people and territories most affected by the housing crisis. Housing Europe sees this as the beginning of a new framework and a political commitment to decisively and coherently support efforts to address the housing crisis across Europe.

A plan grounded in dialogue with the sector

Work is starting immediately and that the Plan reflects extensive listening and dialogue with public, cooperative and social housing providers, a clear acknowledgement that the housing crisis can only be addressed with those who deliver homes on the ground. The main responsibility for housing policy rightly remains with EU countries, but there is plenty that can and should be done at European level to address a crisis affecting most parts of the EU.

The Plan also highlights successful practices from across Europe that demonstrate what works when long-term policy, finance and delivery are aligned. These include Denmark’s housing revolving fund that continuously reinvests in the sector; the Vienna model; and the way countries such as the Czech Republic and Poland are developing social housing systems to house low-income families and reduce homelessness, including through lease schemes with social rental agencies. It also points to France’s long-term housing financing through the Livret A savings model and Portugal’s decision to allocate EUR 375 million from the Recovery and Resilience Facility to create social and affordable housing for students.

Housing Europe calls on the European Commission to ensure the structured and continuous involvement of public, cooperative and social housing providers throughout the design and implementation of the Plan. Their role will be central to turning political ambition into delivery on the ground.

Key implications for public, cooperative and social housing providers

The Plan points to improved access to EU and EIB funding, notably through a pan-European investment platform, reflecting the ambition to scale up practices that already work. One such example is the Alliance for Sustainable and Innovative Social Housing, created with the European Investment Bank and Caisse des Dépôts, with the involvement of Housing Europe’s French member, L’Union sociale pour l’habitat. Since 2020, this partnership has mobilised more than EUR 3 billion in investment and directly inspired the creation of the European Responsible Housing Finance Working Group, strengthening links between financial institutions and the housing sector. The EU plan is now determined to take this to another level.

The Plan rightly foresees increased funding for projects aimed at reducing CO₂ emissions in the housing sector, including through partnerships for better homes, alongside a clearer mapping of interactions between EU legislation and housing policies to improve regulation and remove barriers to investment. The strong emphasis on using private finance for affordable homes, however, should draw on real examples of where finance is harnessed to serve the public interest. As outlined in Housing Europe’s recent paper, France, the Netherlands, Germany, Finland, and Denmark have solid experience in optimising private funding.

Sorcha Edwards, Secretary General of Housing Europe, added:

“While the lack of affordable housing is a growing problem, we also see many housing practices that are good for people and for the planet. Housing Europe works to share and scale up these solutions — through the Responsible Housing Awards, the Responsible Housing Finance Working Group, Housing2030, the Affordable Housing initiative European Partnership, and by bringing the global housing community together at the International Social Housing Festival. We look forward to scaling up this work in the context of the EU Affordable Housing Plan.”

Legislative initiatives requiring careful calibration

Housing Europe underlines that several forthcoming initiatives will need to be politically and technically well calibrated to avoid unintended consequences that could undermine investment capacity, slow down delivery or weaken the social mission of non-profit housing providers. These include the revision of the State aid framework for social and affordable housing; the proposed Affordable Housing Act, which will require Member States to identify housing stress areas and set out policy frameworks to address the crisis, including by increasing the supply of mission-led housing; and the initiative on a European investment framework for potential investors in social and affordable housing. Technical assistance and support must also be provided to Member States where housing systems are still emerging, enabling the creation of housing bodies, public and not-for-profit providers and delivery tools capable of surviving beyond electoral cycles.

Strengthening political coordination

The creation of a European Housing Alliance and the establishment of an annual European Housing Summit will complement meetings of Housing Ministers and help maintain political momentum at EU level, something that has been missing for far too long.

A turning point for housing in Europe

With this first European Affordable Housing Plan, the EU acknowledges housing as a shared European challenge requiring coordinated action, investment and long-term reform. Housing Europe stands ready to work with EU institutions, Member States and partners to turn this ambition into concrete results for people and communities across Europe.