Building on its position paper on affordable and sustainable housing and reply to the European strategy for housing construction consultation, EBC has submitted its feedback for the European Commission’s consultation for the Affordable Housing Plan.
Closed last week, the objective of this public consultation was to facilitate the gathering of additional evidence and knowledge that would help the European Commission identify policy actions for the Affordable Housing Plan announced for the end of 2025.
EBC supports the willingness of a more coordinated response from the European, national, regional and local levels to address the shortage of housing, while balancing the need to make housing more affordable and more sustainable at the same time.
In its response, EBC focused on five key sections of the consultation:
EBC supports some convergence on the EU definition of affordable housing, especially when public funding is involved. To increase supply, the focus should be on making the construction sector more efficient and competitive, speeding up permitting, and repurposing vacant buildings. EBC stressed that sustainability and affordability can go hand in hand through staged and deep renovations that reflect economic realities, with fair pricing and supportive frameworks enabling SMEs to innovate.
The main financial challenges for affordable housing lie in limited access to long-term financing, complex support procedures, and the difficulty for households and small investors to secure adequate funds for construction. To address these, EBC supports blended finance combining grants and loans, flexible financing options, and public–private partnership. Finally, EBC calls for clearer guidance, better mapping of EU funding instruments, and capacity-building to make EU funds more accessible and user-friendly.
EBC emphasises that reducing red tape, speeding up planning and permitting, improving access to finance, and ensuring availability of skilled workers are crucial to lowering costs and scaling up construction. EU action could help bring innovative techniques and products to market by fostering a Single Market for recycled construction materials, encouraging the transformation of vacant buildings, and reducing administrative burdens through the “only once” and “think small first” principles, including in public procurement.
EBC notes that high costs, the complexity of changing an area’s designation from commercial or industrial to residential use, and lengthy permitting processes are major barriers to repurposing and renovating vacant buildings. Public authorities can help by maintaining a clear inventory of unused buildings, adapting zoning and building standards, streamlining permitting, and offering financial incentives such as grants or tax breaks.
EBC highlights that addressing labour shortages in construction should focus on making vocational education and training more attractive and accessible, and promoting upskilling and reskilling across the construction value chain, including digital and green technologies. At EU level, measures could include better recognition of professional qualifications, supporting social dialogue to enhance working conditions, and facilitating the use of EU funds to promote construction careers and showcase the sector’s role in the economy, societal needs, and the green and digital transitions.
EBC looks forwards to the announced Affordable Housing Plan and EU strategy for housing construction, for which construction SMEs and crafts will play a critical role at the local level.
To explore EBC’s position on housing, we invite you to read our position paper ‘Balancing affordability and sustainability to address the housing crisis: Proposals from SMEs and craft trades in the construction sector.
