‘A generation cannot build a future,’ MEPs warn over soaring EU rents

The European Parliament adopted recommendations on the EU housing crisis on Tuesday, calling for a range of measures aimed at improving access to decent, sustainable and affordable housing across the European Union.

The report from the Special Committee on the Housing Crisis, which was adopted by 367 votes in favour, 166 against and 84 abstentions, urges EU initiatives to tackle rising prices and shortages by supporting construction and renovation.

The report states that millions of Europeans face precarious living conditions as a result of the housing crisis and calls for coordinated action to improve supply and affordability across member states.

MEPs emphasised the need to improve living standards by ensuring decent housing conditions and by strengthening the Commission’s Affordable Housing Plan.

Lawmakers said that the plan should allocate specific funds for renovation and energy performance improvements in residential buildings in order to combat energy poverty and improve overall housing quality.

They also stressed that all new dwellings should meet quality standards related to insulation, energy efficiency and indoor air quality.

The parliament also addressed the growing expansion of short-term rentals, urging that upcoming legislation strike a balance between the development of tourism and ensuring access to affordable housing.

MEPs said that EU legislation should establish common objectives at EU level while allowing member states, regions and local authorities the flexibility to design and implement measures suited to their territorial realities and housing markets.

The report also calls for an adequate share of public and social housing in EU cities, aimed at improving housing affordability and supply for vulnerable groups.

In addition, the parliament strongly condemned squatting, describing it as the illegal occupation of homes, and called for stricter measures to protect property owners.

At the same time, lawmakers urged member states to strengthen tenant protections by ensuring fair rental conditions and preventing disproportionate rent increases.

On fiscal policy, MEPs advocated incentive-based tax systems to support low- and middle-income households, as part of broader efforts to improve housing accessibility.

They also proposed removing tax barriers faced by first-time buyers, such as high registration fees, and establishing tax conditions that make long-term rentals more affordable.

The report calls for greater EU investment in housing through better coordination of existing funding programmes.

It also suggests reallocating unused resources from the Recovery and Resilience Plan to support the construction and renovation of social, public, cooperative and affordable housing.

Lawmakers further said that any revision of state aid rules should facilitate public investment in social housing while respecting the diversity of national housing markets across the EU.

MEPs also urged the European Commission to introduce a housing simplification package to reduce red tape in the sector.

They called for simpler permitting procedures, including digital permit-granting processes, and recommended that planning permits be processed within a maximum of 60 days.

The report additionally emphasises the importance of strengthening the EU’s construction and renovation sector.

MEPs said the EU must enhance its industrial sovereignty in the construction and renovation sector by scaling up innovative and sustainable products.

They also urged the Commission to reinforce the single market for raw materials and introduce minimum “Made in EU” origin requirements for components used in EU co-financed projects.

Finally, the report highlights the need to improve the working conditions of skilled workers in the sector through training initiatives and fair wages.

Lawmakers also called for easier labour mobility within the EU, mutual recognition of professional qualifications and, where necessary, the recruitment of skilled workers from third countries.

“A generation that cannot afford a home cannot build a future. Europe is short 10 million homes, rents are up by more than 30 per cent, and young people and families are paying the price,” said rapporteur of the housing report Borja Giménez Larraz.

“For the first time ever, the European Parliament is setting out a roadmap a housing simplification package, faster permits in 60 days, investment in skills, legal certainty and protection for property owners and tenants, the mobilisation of private and public investment, and stronger support for young people, families and people with disabilities,” Larraz added.

“No more excuses,” the MEP stressed. “Member states must now deliver,”

Meanwhile, Housing committee chair Irene Tinagli stated that “housing is a fundamental social priority, and in the past year our committee has demonstrated that the housing crisis in the EU is real, affecting people in all member states”.

“Today, the European Parliament is taking action to address this urgent social and economic crisis by putting forward practical and innovative solutions,” Tinagli said.

“The housing crisis has far-reaching consequences for the quality of life of Europeans, impacting people’s health, social cohesion, and access to economic opportunities,” she added.

“EU action is essential to restore balance and fairness in the housing market, because everyone deserves a place to call home,” Tinagli concluded.