Why is EU action needed?

In some areas across Europe, housing demand significantly exceeds supply. This pressure is especially felt in cities, metropolitan areas, islands and other tourist destinations. In constrained housing markets, some forms of non-primary use of housing can make it harder for those who are looking for a long-term home.

Public authorities across the EU are already taking action, introducing rules regulating short-term rentals, secondary homes or vacant dwellings. Such measures must comply with EU law, but authorities currently have to apply general legal principles without a common operational framework for demonstrating housing stress and assessing whether measures are justified and proportionate. Cities and Member States have therefore called for greater legal certainty and clearer rules.

The Affordable Housing Act is the response.

The proposal for the EU Regulation provides national, regional and local decision makers with a clearer framework for action. Where an authority establishes that an area is experiencing housing stress, it remains free to decide whether to intervene and which measures best respond to local circumstances. Any measures must be evidence-based, necessary, proportionate and targeted at the pressures identified. Restrictions alone cannot solve housing shortages. The Affordable Housing Act Recommendation by the Commission therefore supports authorities in accelerating housing supply, including by making better use of land and existing buildings, simplifying planning and permitting, and increasing the supply of affordable and social housing.

See the factsheet accompanying the Affordable Housing Act for a visual overview.

Financing and support for areas under housing stress

EU financial and technical support can help turn action plans into new homes. Find an overview of relevant programmes and initiatives on the dedicated page on financing for sustainable and affordable housing in areas under housing stress.