Access to housing for the European modest and middle classes hampered by shortages and soaring prices
The sale prices of new homes are exploding in the European Union and will show an increase in 2021 of nearly 10%, a sign of considerable tension between an increasingly scarce supply and a demand that is still just as sustained.
“Low-income households and the middle classes are gradually being excluded from home ownership and rental, affordable housing is becoming… unaffordable” commented Marc Pigeon, President of Build Europe. “Without a powerful and rapid political decision, the current situation can only get worse given recent developments,” he continued.
For Build Europe, the diagnosis is clear:
- Still marginal a few years ago, the Malthusianism of local elected officials, fueled by the ever-stronger opposition of the better-housed populations to the construction of new housing, is tending to become the rule.
- Even if the objective of land sobriety is shared by all operators, too radical an implementation of zero net artificialisation (ZAN) will inevitably lead to a reduction in supply and an inflation in the price of land, and therefore housing.
- Finally, the will of the public authorities to fight vigorously against thermal sieves comes up against the ability of owners and will lead, without a massive plan, to the withdrawal from rental and sale of millions of homes in Europe.
Four levers must be activated urgently to prevent the crisis
To avoid a brutal and widespread housing crisis, European property developers, developers and builders are suggesting that the ministers of the Member States act on four essential levers in order to breathe new life into the production and renovation of housing.
Programming and planning: it is natural to require politicians to program and plan the supply of land to meet current and future needs. Thus, in addition to the controlled opening to the urbanization of new areas, urban wastelands are spaces whose reconquest should be accelerated by exceptional measures. As all new housing costs local authorities in public facilities, local elected officials must be supported to remove the obstacles to the issuance of new building permits.
Tax policy: the taxation applied to real estate, from its design to its transmission, is overwhelming and heavily increases the cost of housing. We must reduce the burden of taxation for this essential service and, for example, develop reduced VAT rates or targeted aid to help develop a supply of affordable housing, both for purchase and for rental.
Regulations: the members of Build Europe share the environmental ambition, provided that it does not come at the expense of meeting the needs of our fellow citizens. The last few years have been particularly productive in terms of standards that are ever more restrictive (zero net artificialisation), costly (new thermal regulations, taxonomy, etc.) and sometimes useless. It is essential to plan for a break in standards for the next five years to allow the entire construction sector to adapt to recent developments.
Listening and partnership: on the one hand, listening to citizens who see their purchasing power tirelessly deteriorating and who aspire to be housed with dignity. On the other hand, the partnership with responsible and committed public or private professionals to accelerate the transition to a carbon-free economy. The French presidency of the European Union must become a key moment to relaunch new construction and renovation at affordable prices throughout Europe.
"Together, let's make housing a great European cause!" concludes Marc Pigeon, President of Build Europe.