EU to focus on housing needs in year ahead – EC President
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Housing will take centre stage on the European agenda in the months ahead, with EC President Ursula von der Leyen announcing several initiatives to tackle soaring costs across the EU.
“Affordability is a main focus of the Commission Work Programme for 2026,” von der Leyen told the European Parliament in Strasbourg, stressing that high housing prices threaten citizens’ livelihoods and Europe’s competitiveness.
A key measure set for spring will regulate short-term rentals, which Housing Commissioner Dan Jørgensen said are driving up prices in major cities.
“We cannot allow locals to be pushed out of their neighbourhoods,” he explained, promising a firm but fair approach.
During the present legislature, the European Parliament has strongly called for housing to take a more important role in the Commission’s work. A special committee on the subject has tabled a wide-ranging set of measures to make housing more affordable, accessible, and sustainable across all Member States, addressing challenges such as limited supply, lengthy permit procedures, rising construction costs and unequal access for young and low- to middle-income households.
Since its release, the report has sparked debate across political groups, with each emphasising different priorities, from accelerating permits and cutting red tape to expanding social housing and promoting sustainable construction initiatives.
The urgency of the proposals is underscored by housing trends across the EU. Between 2015 and 2024, house prices rose by an average of 53%, with Hungary, Lithuania and Portugal among the hardest-hit countries. According to Eurostat, property prices rose by over 60% over the same period in Malta.
Central to the proposals of the parliamentary report, is the need for faster and more efficient housing development. The Committee recommends streamlining land-use and administrative procedures, with permits for housing projects processed quickly and digitalised to reduce delays. Bulk purchasing of sustainable construction materials is encouraged to lower costs and accelerate the delivery of new homes.
These measures aim to enable developers and housing associations to respond more effectively to demand while supporting green building practices.
Investment and financing form another cornerstone of the Committee’s approach. The proposals call for increased public and private funding for housing projects, including front-loading of EU and national funds for housing associations.
The European Investment Bank (EIB) and Cohesion Policy funds are highlighted as key instruments to finance both affordable housing construction and energy-efficient renovations. Tax incentives for landlords renting to families and young people are also suggested to increase rental availability for those most in need.
The Committee’s proposals aim to address these pressures with practical, multi-faceted solutions, setting the stage for the EU Affordable Housing Plan expected by the end of 2025.
