European Housing Policy – growing affordable supply sustainably?

Abstract

The European Commission is embracing the field of housing policy, bringing together two agendas: affordable housing supply and decarbonisation and energy efficiency. It is a steep learning curve and the EC is in listening mode. The new EC Commissioner for Energy and Housing and its Housing Task Force will soon develop a European Affordable Housing Plan, while the European Parliament via a Special Committee will prepare a report on the Housing Crisis and appropriate responses. The EIB is also playing an active role. So far, member states with established affordable housing systems have been relatively quiet. More effective and productive systems can be found in Austria, Denmark, France and Finland. They make use of mission focused providers, incorporating long term stable circuits of investment, promoting the growth and maintenance of social housing assets. Their success stems from the requirement to cover costs, build-up of equity and reduce reliance on costly finance and uncertain subsidies. Well regulated systems also prevent costly profiteering and extractive practices and promote long term security of tenure. A number of EU member states have not established such effective systems. To fill this institutional void, more contract-based approaches are being promoted. PPP contracting is also occurring in parallel with innovating systems, as in Ireland. This paper reviews evidence on growth and sustainability of affordable and social housing in several countries in Europe through contrastive research, validated through national expert interviews. It makes recommendations of relevance to the European Housing Plan, as well other national housing strategies.