Interior Minister Constantinos Ioannou has pledged to address the EU’s rapidly worsening housing problem during Cyprus’ six-month presidency of the Council of the European Union. He highlighted the urgency of affordable housing as a critical issue affecting all 27 member states.
Speaking on Friday, Ioannou stressed that while housing policy is primarily a national responsibility, the growing challenges faced by many European citizens in accessing affordable and sustainable housing necessitate a coordinated response from the EU. “The increasing difficulty for a large number of European citizens to secure access to affordable and sustainable housing makes a coordinated European response necessary,” he stated.
The upcoming appointment of Dan Jorgensen as the European housing commissioner by European Commission President Ursula von der Leyen in 2024 underscores the recognition of the housing crisis at the highest political levels within the EU. Ioannou noted, “Addressing the housing crisis is a complex undertaking, but there is strong political will for cooperation so that the crisis can be turned into an opportunity for the EU, for the benefit of European citizens.”
To facilitate discussions on this pressing issue, Cyprus will host an informal ministerial meeting on housing in May. This meeting aims to bring together EU officials to strategise on effective solutions. Additionally, the European Commission released a plan last month specifically targeting affordable housing, which is structured around four key pillars.
Housing crisis: Four Pillars of the Housing Plan
The first pillar focuses on boosting housing supply. The Commission aims to enhance productivity and innovation in construction by promoting advanced materials and methods, including offsite and modular construction. They plan to cut red tape to expedite housing supply through a new “housing simplification package.” This initiative seeks to reduce administrative burdens and improve cost efficiency in permitting and renovation processes.
Investment Mobilisation Strategies
To mobilise investment, the Commission proposes the creation of a new “pan-European investment platform” that will collaborate with the European Investment Bank and various national and regional financial institutions. Furthermore, a revision of state aid rules is on the cards, allowing member states to implement social and affordable housing projects more swiftly, without the need for prior approval from the Commission.
Immediate Support and Market Regulations
The third pillar aims to provide immediate support while also driving necessary reforms. This includes addressing issues stemming from short-term rentals, such as those offered by platforms like Airbnb, which have been contributing to local housing affordability problems. The Commission plans to introduce new legislative measures to balance the benefits of tourism with the housing needs of local populations.
Additionally, the plan addresses speculation in the housing market, promoting transparency and identifying speculative behaviours that may be distorting market conditions. Structural reforms in areas such as spatial planning and taxation are also encouraged to streamline processes and enhance housing supply across the EU.
Support for Vulnerable Groups
Lastly, the plan prioritises the protection of the most affected populations. It aims to mobilise investments for student housing and develop innovative housing models tailored for young people and those from disadvantaged backgrounds. The Commission has committed to expanding social housing and implementing measures to prevent and address homelessness effectively.
Through these initiatives, Ioannou and the EU aim to tackle the growing housing crisis, transforming it into an opportunity for improvement within the bloc. As Cyprus takes on its presidency, the focus will undoubtedly remain on fostering collaboration and implementing solutions that benefit European citizens.