2024-07-28 04:26:16
In recent years, renting or even buying a home has proven to be a difficult sport, with prices rising rapidly and supply remaining short of demand. Especially in the European urban centers the prices in houses and apartments have now reached unreal levels.
Both the European Commission and the European Investment Bank (EIB) are expected to focus on the “battle” to deal with the housing problem in the coming years. Just a few days ago, the President of the Commission, Ursula von der Leyen, presenting the Commission’s roadmap for the five years 2024-2029 in the Plenary of the European Parliament, emphasized that she will propose a European plan for affordable housing.
Affordable housing is a priority
“People are struggling to find affordable housing. That is why for the first time I will appoint a Commissioner with direct responsibility for housing. And we will develop a European Affordable Housing Plan.
The EIB is already planning to contribute to this effort through pan-European financial products. The main objective is to finance social and affordable housing projects in the countries facing a problem. In Greece, the EIB has already started contacts with executives of non-profit institutions, with the regions and other bodies, with the aim of supporting – on extremely preferential terms – the construction of new houses and also the change of use of buildings in order to be used for affordable housing with the system of the so-called “social compensation”.
What is sought, among other things, is to increase the supply of apartments – houses so that with the available financial tools buildings can be constructed or renovated. Special emphasis is placed on residences for housing civil servants in island and tourist destinations as well as in urban centers. In addition, negotiations are ongoing for the financing of the construction of student residences.
How did the problem get worse?
In the last 15 years, the problem of finding housing, either to rent or to buy, has intensified in many European capitals. One of the reasons is the fact that more and more residences are offered to tourists through short-term rental platforms, resulting in a continuous decrease in the supply of houses for long-term rental.
According to Eurostat, around 20 million people in Europe face a serious housing problem or lack of housing. The European Commission has pointed out that in the last decade the number of homeless people has increased significantly across Europe.
The homeless are not only those who live on the streets, but also those who are temporarily accommodated in structures or even in the homes of relatives, while an expanded definition also includes those who are forced to live in degraded conditions in terms of water supply, heating or roof electricity.