EU to unveil plan to tackle housing crisis

The figures are stark: nearly 1.3 million people are homeless across the 27-nation bloc -- more than the entire population of Brussels.

Over the past 15 years, housing prices have surged by 60 percent, while rents have climbed almost 30 percent, according to Eurostat data.

"For too many Europeans today, home has become a source of anxiety," European Commission head Ursula von der Leyen said in a recent speech addressing the challenge.

Responding to a crisis that affects all EU member states, the commission has drawn up an "affordable housing plan" to be unveiled Tuesday.
Beyond city centres
Housing is not an issue that comes under the remit of the EU, unlike agriculture, migration or trade -- meaning the responsibility to act lies primarily with member states.

But pressure has mounted in recent years, particularly from the left, for Brussels to step in.

"It is a widespread crisis all across the EU," said Irene Tinagli, the socialist chair of the EU parliament's housing committee, pointing to an issue that reaches far beyond Europe's big city centres.

"We've been pushing for this for years but we've been struggling to put it at the core of the European policy," said Tinagli, who recounts meeting numerous mayors urging action at EU level.

The commission says it has been surprised at the level of interest its housing proposals have generated.

"This is getting more traction than we expected," a commission official told AFP.
Regulating short-term rentals
According to a draft seen by AFP, the EU executive plans legislation to curb short-term rentals such as Airbnb, particularly in tourist hotspots where locals blame them for driving up rents.

The short-term rental crisis is particularly acute in Spain, where the government slapped a hefty fine on Airbnb this week notably for advertising banned properties.

Measures could include capping the number of nights allowed.

Brussels also wants to help boost construction -- though it is not considering quotas or price caps, the commission official said.

"We will not be presenting a binding legislative proposal saying that every member state has to build X amount of houses and they can only cost X amount of money," said the official.

Instead, the EU executive hopes to tackle labour shortages through large-scale apprenticeship programmes and ease some environmental rules to speed up building permits.

It also aims to facilitate public investment in construction and mobilise private capital, which it estimates could help plough up to 375 billion euros ($440 billion) into the sector by 2029.

The commission estimates the bloc needs more than two million new homes annually to meet demand.