The position that the issue of affordable housing in Europe is mainly a problem of sufficient housing supply was highlighted during his presentation at the 20th Real Estate, Property Development & Construction Conference & Exhibition organised by Altia by the Managing Director of Build Europe, Filiep Loosveldt.
In his speech entitled 'Delivering affordable housing at scale – The role of private developers in Europe's housing supply,' Loosveldt referred to the key challenges facing the European housing market today, underlining that the demand for housing is growing faster than the production of new homes.
An issue that affects the economy and society
As he noted, housing affordability affects multiple aspects of the European economy and society, including labour mobility, economic competitiveness, demographic developments and social cohesion.
According to Loosveldt, the main challenge is structural, as in many European countries, the real estate market faces a significant housing supply deficit.
Housing production depends on the institutional and investment environment
Loosveldt said that the ability to produce new housing depends on a number of factors, such as land availability, urban planning frameworks, licensing systems, legal certainty, investment conditions, tax regimes and construction capacity.
As he explained, when these processes are delayed or operate inefficiently, housing supply cannot meet demand, which directly affects price affordability.
The role of private developers
In his presentation, he also emphasised the role of private developers in the housing development process, noting that they organise the implementation of projects, collect land, shape development projects, secure financing, manage investment risk, and coordinate construction.
As he pointed out, residential development is a high-risk and capital-intensive activity, while developers play a crucial role in converting land into housing.
Structural barriers to increasing supply
Loosveldt also referred to a number of structural challenges that limit housing production in Europe, such as complex urban planning frameworks, lengthy permitting procedures, limited land use, financing difficulties and fragmentation of regulatory frameworks.
As he noted, without a significant increase in large-scale housing production, improving affordability remains difficult.
The importance of appropriate policies
He pointed out that some policy interventions, although aimed at improving affordable housing, may limit the supply of housing if they create strict urban planning frameworks, unpredictable licensing environments or additional obligations at the project level.
As the expert emphasised, affordable housing policies should enhance housing production, not limit it.
Need to strengthen production capacity
Finally, Loosveldt noted that addressing housing affordability in Europe requires faster permitting systems, predictable urban planning frameworks, better access to usable land, mobilising private investment and simplifying regulatory procedures.
As he stated, effectively addressing the issue requires the cooperation of all actors in the housing ecosystem, including public authorities, housing organisations and private developers, underlining that increasing the supply of housing is a key prerequisite for improving affordability.
(Source: InBusinessNews)
