The European Parliament has approved its recommendations on how to address the housing crisis in the EU

Strasbourg - The European Parliament (EP) today approved its recommendations on how to tackle the housing crisis in the EU. Ensuring affordable housing for millions of Europeans is expected to be aided by the simplification of construction procedures, reduction of administrative burdens, including a number of EU regulations, and support for investments in the construction and renovation of apartments through EU funds, according to the EP. MEPs also called on the European Commission to convene the first EU summit on housing and to evaluate the impact of short-term rentals on housing availability.

"For many years, the EU has adopted regulations that raise the cost of apartment construction, slow it down, and complicate it; energy standards, complex administrative requirements, and some parts of the Green Deal significantly increase the costs of building new apartments," stated MEP Klára Dostálová (ANO) in Strasbourg today, who is the shadow rapporteur for the housing crisis report. According to her, at least 13 EU regulations and directives have a negative impact on housing construction in the EU. "If we really want to help people, we must first remove the obstacles we have created ourselves," Dostálová said, emphasizing the need to simplify construction and accelerate permitting processes.

In the report approved today, MEPs request the European Commission to provide a simplification package that would reduce bureaucracy in the residential construction sector. They call, among other things, for a simpler permitting process, such as digitizing the process, and also propose a 60-day deadline for issuing building permits.

The EP resolution on the housing crisis also states that housing issues are primarily the responsibility of member states, but some EU initiatives can be beneficial in this matter, such as EU funds that will strengthen investments.

"We are not convinced that the European Union should be involved in housing at all. It is not within its competence," said MEP Ondřej Krutílek (ODS) in Strasbourg. According to him, the EU has contributed to the housing crisis through its regulations. Krutílek mentioned, for example, the directive on the energy performance of buildings, which he claims increases housing costs.

According to the EP report, rents in the EU have risen by almost a third from 2010 to mid-last year, and property prices have increased by about 60 percent. Millions of people are facing a housing crisis in the EU, particularly affecting young people, who then delay important life decisions including starting a family.

According to the EP, the housing crisis has also become an obstacle to enhanced competitiveness for Europe, as it weakens productivity and reduces the attractiveness of regions for investment.

"The housing crisis affects the most vulnerable, impacting young people, but also the aging population; it harms those who are the backbone of our communities, employees in education, transport, and healthcare,” said European Commissioner for Energy and Housing Dan Jorgensen in Strasbourg today. He promised that the Commission will present a proposal in the second quarter on how to tackle the issue of unaffordable housing for the most vulnerable. He also mentioned that a housing summit is planned, as called for by MEPs in their report today.

The EP report also states that construction businesses are reporting a labor shortage. It therefore calls on the Commission and member states to support labor mobility in the construction industry. MEPs also urge member states to map so-called brownfield sites that could be transformed into construction sites for housing.

The EP recommendations also mention the system of short-term rentals, which according to it can be beneficial for local economies and can help address rural depopulation. However, MEPs urged the Commission to conduct a comprehensive assessment of the impact of short-term rentals on housing prices and affordability.

MEPs also strongly condemned squatting (the unauthorized occupation of abandoned buildings) and called for greater protection for property owners. They also urge member states to strengthen the protection of tenant rights, including the limitation of unreasonable rent increases.