The EIB forum met on the 6th March to discuss Europe’s investment priorities. Bent Madsen, President of Housing Europe, insisted on three key factors to mobilise funding. We must reinforce the role of entities that are able to bundle projects, link funding to long-term affordability provision, and engage in dialogue with housing providers who understand local needs best.
How to increase investment in affordable housing and address inequalities?
Bundle projects, link funding to the affordability of provision, and engage in dialogue
Specific solutions depend on the national context, but the use of intermediaries is key. In countries like France (Caisse des depots) or Ireland (the Housing Agency), intermediaries are successfully supporting the bundling of projects. This work should be reinforced. In others, more support is needed on providing guarantees, the right conditionalities to make sure that funds are used for projects which will remain affordable to residents in the long term, and technical assistance.
The way forward is dialogue between housing providers, intermediaries and banks. This exchange of ideas and solutions helps develop custom solutions for different contexts. Housing Europe’s Responsible Housing Finance Working Group, which includes the EIB, is doing just that.
Addressing Inequalities
The housing crisis is affecting many and is perpetuating and reflecting inequalities. Addressing the crisis requires moving quickly and at scale; addressing inequalities and ensuring sustainability requires a systemic and long-term approach which will keep investment circulating. That means investing with local actors who can provide custom, community-based solutions to complex problems, and investing in capacity building.
The public, cooperative, and social housing sector has decades (if not a century) of experience in doing exactly that.
Watch the interview with Bent: