Investment in housing in the European Union is currently below the level needed to cope with growing demand, Interior Minister Constantinos Ioannou said on Tuesday.
Around €150 billion in additional investment is needed per year, Ioannou noted, in statements before the start of the Informal Meeting of EU Ministers for Housing at the Filoxenia Conference Center in Nicosia.
Ioannou is chairing the Informal Ministerial Meeting on Housing, which was organised within the framework of the Cyprus Presidency of the Council of the European Union.
"The housing crisis and the lack of affordable housing is a European challenge that requires a common response," Ioannou said in his doorstep statements before the meeting, noting that the Cyprus Presidency has placed housing policy high among its priorities and that today's informal meeting is taking place precisely within this framework.
"The two issues that will be discussed today in the context of the Informal Meeting aim to increase the housing stock, which is also the ultimate goal of the European Union, so that there is a balance between supply and demand," he said.
The first item on the agenda, he said, is the reduction of bureaucracy and delays that currently exist in licensing and, essentially, the simplification of licensing procedures.
The second item on the agenda is investment, the Minister noted. "Currently, investment in the European Union is below the level needed to cope with growing demand. Approximately €150 billion of additional investment is needed per year and part of the discussion will be spent on boosting investment, mobilising public and private resources and using and identifying European financial instruments," he said.
The aim of today's conference is to serve as a springboard for encouraging dialogue and identifying actions that can strengthen countries' plans to solve the housing problem, he said.
Moreover, in his statement at the start of the proceedings, Ioannou told his counterparts that housing is not just a commercial product, but "is a cornerstone of human dignity."
"Access to adequate and affordable housing is a key foundation of social cohesion and an essential component of the European social model, which is one of the greatest legacies of the European Union, a catalyst for economic growth and a basic condition for the mobility of our citizens, especially young people and workers," he added.
However, Ioannou also noted, “we all know that the challenges we face are complex and growing.” The significant increase in prices, limited supply, high construction costs and demographic pressures are creating an environment where access to adequate and affordable housing is becoming increasingly difficult, not only for vulnerable population groups but also for the middle class, he noted.
In this context, he said, administrative complexity is a key factor in exacerbating the problem. “At the national level, it delays the implementation of new housing projects as well as renovations. Time-consuming procedures, overlapping responsibilities and limited administrative capacity create uncertainty, increase costs and negatively affect investors and households,” Ioannou said, noting that “it is important to underline that simplification is not the same as deregulation.” The challenge, he said, is to achieve the right balance between efficiency and ensuring environmental sustainability, accessibility and social cohesion.
In this context, the Minister raised two questions to guide the discussion. The first concerns which administrative or regulatory barriers currently have the greatest impact on housing production and renovation at the national level and context. The second question he raised was which simplification measures implemented at national, regional or local level have proven most effective in reducing delays and improving the predictability of housing permitting procedures and to what extent simplification measures have been applied specifically for housing-related projects.
Commissioner Jørgensen: Preparation of a legislative proposal to address problems due to short-term rentals
"Unfortunately, we are in the middle of a housing crisis in Europe," said European Commissioner for Energy and Housing, Dan Jørgensen, upon his arrival at the conference center.
"Too many people cannot find an affordable home. This is of course something we need to take extremely seriously. Having a roof over your head, a place to call home is, in my opinion, a human right," he said. "And we need to do everything we can at EU level, at national level, at local level to ensure that people can actually find homes that are decent, sustainable and affordable," he added.
Jørgensen noted that one of the issues he identifies “is the fact that we have huge problems with short-term rentals in many cities in Europe.” Short-term rentals are a good idea in themselves and in some places are also beneficial for people’s incomes and tourism, he said, but noted that “too many places, unfortunately today, suffer from too many short-term rentals that increase house and property prices and displace ordinary people from their homes. So, we are preparing a legislative proposal to address these issues,” the Commissioner said.
Digitalisation is a key solution to accelerate housing supply, says Estonian Minister of Infrastructure
The Minister of Infrastructure of Estonia, Kuldar Leis, referred to his country's experience in dealing with the housing problem.
In statements upon his arrival, Leis noted that for Estonia, digitalisation is a key solution to accelerating housing supply and said they would share their own experience on the successes and challenges of e-commerce during the discussion.
“We will publish the first comprehensive housing policy framework very soon,” he added. The Estonian Minister said that they completed their state-level analysis of affordable and accessible housing policy options last year.
Our digital solutions, he said, “help us maintain and develop regional balance, ensuring that housing can be built across the country, not just in the big cities.”
CoR President: Housing needs a long-term integrated strategy
"We are the voice of cities and regions from across Europe, from big cities to mountainous and rural areas," said Kata Tuto, President of the European Committee of the Regions (CoR), in statements upon her arrival at the conference center.
Housing, she said, "is a problem everywhere in our big cities and we are here because we are not just talking about building houses, we are talking about long-term strategies for our cities, because it is never just about houses, but about infrastructure and the future of the city as a whole."
"We think about transportation, we think about public services, we think about water, waste and sustainable cities and that's what we stand for, that housing shouldn't just be a quick fix," she added, noting that it should be a long-term comprehensive strategy that also includes local government.
(Source: InBusinessNews)
