Debate: Decent Housing for All
Date: WEDNESDAY, 4 OCTOBER 2023
Speaker: Nicolas Schmit
Language: EN

Recently, inflation and the increase in interest rates have had a sizeable impact on rents and mortgages. Shortage in available and affordable housing comes at a time when citizens and particularly the young, are struggling to cope with soaring costs for food and energy. The risks of increased housing exclusion and poverty are higher than ever for vulnerable and lower-income households, but also for medium-income households. The housing crisis is also a major social problem as it prevents younger people from leaving their family homes and becoming independent, forcing them to delay major decisions in their lives, such as starting families. It is estimated that the annual investment gap in social and affordable housing reaches EUR 57 billion. Moreover, as many as 800 000 social housing units require renovation each year.  We need a holistic policy approach encompassing economic, social and financial considerations, addressing availability, affordability and adequacy. Housing policies impact our communities and our social cohesion. Social housing must remain or perhaps become again central when developing housing policies. The right to decent and affordable housing is at the heart of the social Europe we want to strengthen. This is why we need strong political engagement, efficient housing policies, and adequate financing. The first responsibility lies obviously with Member States, but we have instruments at EU level to support them. And as the housing crisis has taken a European dimension, there is a need for coordinated actions.  The European Semester provides a framework to assess and monitor housing policies in the EU. Some of the Member States have already received country specific recommendations. The strong focus on the implementation of the European Pillar of Social Rights should lead to balanced recommendations on housing priorities. EU funds offer not only financial resources, they are also powerful enablers to reforms and developing partnerships, namely at local level. It is worth noting that the contribution of the Recovery and Resilience Facility targets reforms and investments in affordable and social housing amounting to around EUR 15 billion, which have been programmed by Member States in their national plans. Member States should use the remaining available resources under the ERF towards more investments in social and affordable housing. This is not only a socialist society but also an economic one. Other EU funds, such as the European Regional Development Fund, the European Social Fund Plus and the Investment Programme are providing support for housing projects as well as combating homelessness. The European Platform on Combating Homelessness brings together national authorities, civil society and European institutions to work towards combating homelessness, which is on the rise in the EU. We have to tackle it through strong cooperation at union level, promoting notably the Housing First approach.  Just a remark on short term rentals, which also contribute in many cities to the housing crisis. Some cities have taken measures in order to redirect housing supply back to residents. There is an obvious need for regulating this market.  Policy initiatives such as the new European powerhouse, the renovation Wave and their concrete action, the Affordable Housing Initiative promote inclusive neighbourhoods and support energy efficiency renovations. I also want to refer to the urban agenda of the EU adopted in 2016 that launched the Housing Partnership that produced a set of actions and recommendations more topical than ever. Policy and funding opportunities to develop the housing ecosystem exist. They have been strengthened under the current Commission. But clearly we have to do more. The declaration adopted under the French presidency and hopefully also under the Spanish presidency by the housing ministers gives many useful orientations for close cooperation between the EU Member States, regions and cities.