Brussels, Dec. 16, 2025 —
The European Commission on Tuesday launched its first-ever European Affordable Housing Plan, citing persistent market failures, supply shortages and weak affordability as key factors driving sharp rises in house prices and rents across the bloc.
The Commission said average house prices have risen by more than 60% and rents by over 20% in the past decade, undermining labour mobility, social cohesion and economic competitiveness. To address these competition and supply-side constraints, the plan combines measures to boost housing construction, stimulate investment and reform rules that restrict supply.
As part of the initiative, the Commission will revise EU State aid rules to make it easier for public authorities to support social and affordable housing without breaching competition law. It will also work with national and local authorities to simplify planning and permitting procedures and prepare new legislation on short-term rentals in areas under housing stress.
The plan foresees continued EU-backed investment—building on €43 billion already mobilised—and the creation of a pan-European investment platform with the European Investment Bank. The Commission said implementation will be driven by a new European Housing Alliance, with a first EU Housing Summit planned for 2026.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3048
