The European Parliament has voted to urge EU member states to cut red tape and introduce tax incentives as part of efforts to address the bloc’s housing crisis.
MEPs on Tuesday adopted a report setting out a series of recommendations aimed at increasing the supply of affordable housing, improving living standards, and speeding up construction and renovation projects across the European Union.
The report was adopted by 367 votes in favour, with 166 against and 84 abstentions. It calls on the European Commission and member states to support the construction and renovation of housing and to address rising prices and shortages affecting millions of Europeans.
Among the key proposals is a call for a “housing simplification package” designed to reduce bureaucracy in the housing sector. MEPs said permitting procedures should be streamlined, including through digital systems, and that planning permits should be processed within a maximum of 60 days.
The report also calls for tax measures aimed at supporting low and middle income households. MEPs urged member states to remove tax barriers such as high registration fees for first time buyers and to introduce tax conditions that encourage more affordable long term rentals.
MEPs further called for increased EU investment in housing by coordinating existing funding and redirecting unused resources from the Recovery and Resilience Plan towards social, public, cooperative and affordable housing projects.
Other recommendations include expanding renovation programmes to improve the energy performance of residential buildings and combat energy poverty. The report also calls for stronger quality standards for new homes, including requirements relating to insulation, energy efficiency and air quality.
The parliament said short term rentals should not threaten the affordability of cities and called for upcoming legislation to strike a balance between tourism development and access to housing.
The report also condemns squatting, describing it as the illegal occupation of houses, and calls for stricter measures to protect property owners. MEPs also urged member states to strengthen tenants’ rights and ensure fair rental conditions.
In addition, the report calls for measures aimed at strengthening the EU’s construction and renovation sector. These include scaling up innovative and sustainable building materials, reinforcing the single market for raw materials, and introducing minimum “Made in EU” origin requirements for components used in EU funded projects.
Rapporteur Borja Giménez Larraz said the scale of the crisis required urgent action.
“A generation that cannot afford a home cannot build a future,” he said.
“Europe is short 10 million homes, rents are up by more than 30%, and young people and families are paying the price.”
He said the report sets out a roadmap including faster permitting procedures, investment in skills, support for young people and families, and the mobilisation of both private and public investment.
Irene Tinagli, chair of the Parliament’s housing committee, said the crisis was affecting people across the European Union.
“The housing crisis in the EU is real, affecting people in all member states,” she said.
“Today, the European Parliament is taking action to address this urgent social and economic crisis by putting forward practical and innovative solutions.”
Fine Gael MEP Regina Doherty, who served as vice chair of the committee, welcomed the vote and said the proposals recognise the scale of the housing challenge facing countries such as Ireland.
“In Dublin and across Ireland we see every day how difficult it has become for young people to find a home they can afford,” she said.
Doherty said the proposals focus on removing barriers that delay construction and make it harder to increase housing supply.
“Across Europe we are simply not building enough homes. Planning systems are too slow, rules are often overly complex, and developers often face barriers accessing finance,” she said.
“These proposals are about removing those barriers and making it easier for countries to increase housing supply.”
Following the vote, the report will now be sent to the European Commission with recommendations that could shape future EU initiatives on housing.