EU Advances Affordable Housing Plan for Member States

European Commission Announces Earlier Plan in Strasbourg

At a plenary session of the European Parliament President Ursula von der Leyen said, "still this year the first European plan for affordable housing will be presented." The measure had been scheduled for 2026 but was moved up, the Commission said during the State of the Union address she gave as the start of her second term.

We have to look at the rents in the short-term," said Dan Jørgensen, after Ursula von der Leyen has indicated that the European Commission will propose a legislative initiative on this.

Portugal and Other Countries Face Housing Pressure

The Commission and officials have pointed to rising home prices and higher rents in Europe, including Portugal. Cities such as Lisbon, Funchal and Porto face strong tourist demand and limited housing supply, which make it harder for young people and low-income families to find affordable homes.

What the Commission’s Plan Is Expected to Cover

Commission spokespeople and commissioners said the plan will look at a range of tools. It is expected to include EU financing options, a review of the EU rules on state aid to allow wider support, and limits to short-term rentals. Ms. von der Leyen indicated the Commission will propose a legislative initiative on short-term rentals. The Commission also plans to address energy efficiency and social housing and to examine the growing role of financial actors in the housing market.

National Responsibilities and EU Limits

Commission officials stressed that housing policy is mainly the responsibility of member states. Commissioner Dan Jørgensen told Lusa that the move to present the plan earlier "is, naturally, a sign that [the Commission] takes very seriously the housing crisis taking place in Europe." He also said:

I will present a very holistic plan, which will be a combination of direct legislation and which will also review existing legislation — how we can simplify it and improve it.

Portugal’s government has already put in place measures such as support for home purchase, increases in public housing supply, and rules on the rental market, and Brussels has said it will look for ways to complement those national efforts.

Source: Diário de Notícias Madeira