PES - Party of European Socialists

09/09/2026 | Press release | Distributed by Public on 09/09/2026 13:45

Progressive leadership delivers Europe’s first Affordable Housing Act

Progressive leadership delivers Europe's first Affordable Housing Act
September 9, 2026
Employment, Social affairs, Health
3 minute read
Progressive leadership delivers Europe's first Affordable Housing Act
Teresa Ribera, European Commission Executive Vice-President; Dan Jørgensen, European Commissioner for Energy and Housing

The Party of European Socialists (PES) supports the presentation of the first Affordable Housing Act by Commissioner Dan Jørgensen and Executive Vice-President Teresa Ribera, giving member states, regions and cities the tools to protect housing affordability in the places under the greatest pressure.

Through years of campaigning, our political family has been the one putting housing on the European agenda. We secured the first European Commissioner for Housing and the European Parliament's special committee on the housing crisis, which adopted its first-ever report in March, addressing the severe housing crisis across the EU. All were key demands of the PES 2024 European election campaign. Last December we also welcomed the first-ever European Affordable Housing Plan. Today, our family presents an effective framework.

The urgency is undeniable. Over the past decade, rents have increased by 59% in Berlin, 75% in Madrid and 103% in Lisbon. Across Europe millions of European citizens are unable to afford a home in the communities they serve.

The Affordable Housing Act responds through two complementary instruments: first, a proposed EU regulation, which establishes a common framework for assessing and justifying housing-related measures, including requirements on proportionality, transparency and review. Second, a Commission recommendation - actions to accelerate the supply of affordable, social and student housing and address the structural causes of housing stress.

For too long, mayors who moved to protect their neighborhoods from being hollowed out by profit-driven short-term rental markets saw their measures dragged into legal disputes over compatibility with EU law. The Act ends that uncertainty. Where authorities can show that short-term rental activity has significantly harmed affordability or availability, they will be able to act, provided their measures are targeted, necessary and proportionate, and the EU Short-Term Rental Regulation is fully enforced. The same clarity is extended to measures on second homes and long-term vacancy.

The proposal comes with a Recommendation on housing affordability and supply, encouraging faster planning and permitting, the renovation and repurposing of vacant buildings, easier investment, and dedicated Housing Acceleration Plans.

We support these decisive steps and emphasize that legal tools must be matched by investments and resources, continued action to end the financialization of our housing stock, and a clear roadmap to end homelessness by 2030. Cities and regions need investment as well as legal certainty.

PES President Stefan Löfven said:

"A home is not a financial product. The European Union is acting on housing, and it is acting because socialists and democrats pushed it to, from the first-ever Housing Commissioner to the first-ever European Affordable Housing Plan. Today's proposal is a decisive step and an opportunity, and it must now be matched by investments and fundings. We will not stop until everyone in Europe has a decent home they can afford."

The PES strongly supports Commissioner Jørgensen's efforts to restore affordability, strengthen social cohesion, and build fairer cities for all Europeans. The proposal now moves to the European Parliament and the Council. This Act shows once again that with progressive leadership, the European Union can make housing policy serve people, not speculation.
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