In a bid to boost housing stocks, the Commission’s plan includes a revision of state aid rules to expressly authorize the use of public funds for the construction of affordable housing. These new rules will allow national governments to pour cash into homes for the middle-class families increasingly priced out of the housing market.
In collaboration with the European Investment Bank, national banks and other financial institutions, the Commission will also mobilize public and private cash for new social and affordable housing via a pan-European investment platform. The construction of these kinds of homes will be listed as a specific objective within the national partnership plans, which member countries will use to distribute the EU cash allocated to them in the bloc’s next seven-year budget.
To further boost supply, the plan also includes a new European Strategy for Housing Construction to simplify and digitize permitting processes, which will be complemented by a housing simplification package in 2027.
Brussels additionally proposes major investments to modernize the bloc’s construction sector, as well as measures to establish common standards for building materials. Similarly, it foresees the presentation of a Construction Services Act in late 2026, which will enable construction companies to ensure labor and working standards while offering services across borders.
Tackling speculation and short-term rentals
In a bid to ensure homes are sold at fair prices, the plan proposes tackling the broader issue of speculation through a careful analysis of the housing market. Over the course of the next year, the Commission will gather data on the scale of this phenomenon, which has led vital homes to be treated like “gold or Bitcoin and other investments made for the sole purpose of making money,” Jørgensen said.
As part of its analysis, Brussels will also examine how speculative practices can be curbed, and help national governments design transparency mechanisms and taxation policies to reduce the market’s financialization.