The European Parliament has approved a new set of recommendations aimed at addressing the deepening housing crisis across the European Union, calling for tax incentives,
streamlined construction permits, and stronger investment in housing renovation and development.
In a vote on Tuesday, lawmakers adopted the final report from the Special Committee on the Housing Crisis with 367 votes in favour, 166 against and 84 abstentions. The report highlights that millions of Europeans are facing unstable or unaffordable housing, urging EU institutions and member states to take coordinated action to tackle rising property prices and housing shortages.
A push for better living standards
Members of the European Parliament (MEPs) are urging the European Commission to allocate dedicated funding for housing renovations under its upcoming Affordable Housing Plan. The goal is to improve energy efficiency in residential buildings while also tackling energy poverty, which continues to affect many households across the bloc.
MEPs also argue that all newly built homes should meet strict quality standards, including proper insulation, strong energy performance and good indoor air quality.
Public and social housing should play a bigger role as well. Parliament recommends ensuring that EU cities maintain a sufficient share of public and social housing to support vulnerable groups and expand affordable housing supply.
Balancing tourism and housing availability
The rise of short-term rental platforms has added pressure to housing markets in many European cities. Lawmakers say future EU legislation should strike a balance between supporting tourism and protecting access to affordable housing.
Under the proposal, the EU would set common objectives, while allowing national, regional and local authorities to tailor rules to their specific housing markets and territorial needs.
Stronger protections for owners and tenants
The report strongly condemns illegal property occupation (squatting) and calls for stricter measures to protect property owners.
At the same time, MEPs emphasize the importance of strong tenant protections, including safeguards against unfair conditions and excessive rent increases.
Tax incentives and investment to boost affordability
To make housing more accessible, the Parliament recommends incentive-based tax systems to support low- and middle-income households.
Lawmakers also suggest:
- Removing tax barriers such as high registration fees for first-time buyers
- Creating tax conditions that encourage affordable long-term rentals
- Improving coordination of existing EU funding for housing
Unused funds from the Recovery and Resilience Facility could also be redirected toward the construction and renovation of social, public, cooperative and affordable housing, the report says.
In addition, MEPs argue that any revision of EU state aid rules should make it easier for governments to invest in social housing while still respecting differences between national markets.
Cutting red tape in construction
One of the report’s central proposals is to simplify administrative procedures in the housing sector.
Parliament is calling on the European Commission to introduce a housing simplification package, which would include digital permit systems and a maximum 60-day deadline for planning approvals.
MEPs believe faster permitting could significantly accelerate new construction projects across Europe.
Strengthening Europe’s construction sector
The report also highlights the need to reinforce the EU’s construction and renovation industries.
Lawmakers want the Commission to:
- Promote innovative and sustainable building materials
- Strengthen the single market for raw materials
- Introduce minimum “Made in EU” requirements for components used in EU-funded housing projects
Improving working conditions in the sector is another priority. The Parliament calls for better training, fair wages and easier labour mobility across the EU, alongside mutual recognition of professional qualifications. In some cases, recruiting skilled workers from outside the EU may also be necessary to meet demand.
Quotes
Rapporteur of the housing report, Borja Giménez Larraz (EPP, ES), said: “A generation that cannot afford a home cannot build a future. Europe is short 10 million homes, rents are up by more than 30%, and young people and families are paying the price. 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. No more excuses. Member states must now deliver.”
Chair of the Housing committee, Irene Tinagli (S&D, IT), said: “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. 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. EU action is essential to restore balance and fairness in the housing market, because everyone deserves a place to call home.”