EU Affordable Housing Act: A much needed building block for a stronger housing EU policy

Key demands of CESI Youth, particularly those aimed at increasing housing supply and strengthening public authorities’ capacity to intervene, are reflected in the new Affordable Housing Act, which comprises a proposal for a binding EU Regulation and a Commission Recommendation. It proposes a common methodology for national authorities to identify an “area under housing stress” and establishes rules on justification, necessity, proportionality, transparency and periodic review when national, regional or local authorities intervene. Under the initaitive, housing policy itself remains a Member State/local competence, in line with the EU Treaties.

The Regulation might impact mostly housing for short-term rentals, second homes, vacant housing and other non-primary uses. Once an authority demonstrates housing stress, it can use measures available under national law to protect long-term residential housing. The proposal for a Regulation explicitly envisages measures concerning non-primary residential use, owner-occupation requirements, measures targeting long-term vacancies and restrictions on conversions away from residential use. It does not seek to impose these restrictions itself but makes it legally clearer when authorities can do so consistently with EU internal-market law.

The accompanying Recommendation focuses on the supply side of housing. Authorities in housing-stress areas are encouraged to prepare housing acceleration plans, expand affordable/social housing, speed up planning and permitting, renovate and repurpose buildings, use vacant and underoccupied stock, allow densification and subdivision, and mobilise land and use public/private financing. To facilitate investments, the Recommendation points authorities towards a Pan-European Investment Platform, public and private capital, revolving funds, guarantees and other instruments, while encouraging investment specifically in below-market, social and student housing.

CESI Youth is pleased that some of its demands have been addressed, most notably:

• The need to increase social and affordable housing supply, including through new construction, renovation and better use of existing buildings;
• The mobilisation of more investment for affordable housing;
• A move towards supply-side solutions, creating housing rather than relying mainly on housing allowances;
• Tackling short-term rentals and 'touristification';
• The recognition of housing as a social issue and a simple market commodity.

However, CESI Youth also deplores missing elements in the Act. CESI Youth Representative Antonello Pietrangeli said: “The Affordable Housing Act is a welcome step, but important gaps remain. Young people need stronger protection as tenants, including against unfair rent increases and evictions. Renovations should not result in higher costs simply being passed on to renters. Affordable housing also depends on decent wages, secure jobs and strong public services. We also need a stronger commitment to the Housing First principle to tackle homelessness and housing exclusion. Above all, housing must be treated as a social right: Young people need access to a secure, affordable and quality home if they are to build their lives and their future.”

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