European Energy and Housing Commissioner must bring the social heart of housing to the surface

His home country, Denmark offers one of the good examples of an effective housing model, where one out of five homes is social housing, a revolving fund ensures continuous investment in the building stock and people, tenants making decisions about their homes, and social welfare is closely linked to job market integration. This means generating social value instead of turning homes into profitable assets.

As President Ursula von der Leyen stated in her mission letter to the designated Commissioner: "Millions of young people and families struggle to find affordable housing throughout Europe. We urgently need to address this, supporting Member States to address structural drivers and unlocking public and private investment for affordable and sustainable housing." This call comes at a crucial time when across Europe, including in Denmark, delivery rates are down due to the on-going high construction and land prices. A construction slowdown that is exacerbating the high rent and house prices and the social knock-on effects.

Bent Madsen, President of Housing Europe and CEO of the Danish National Association of Non-profit Housing Companies (B.L) stressed: “The Aalborg East’s success in Denmark is a blueprint for holistic future housing regeneration projects that must be a cornerstone of the European Affordable Housing Plan. Over the last decade, this once-stigmatised district has undergone a complete transformation, thanks to the social housing provider and the city, improving energy efficiency while maintaining affordability, increasing the diversity of housing types, reducing energy use and crime by 50% and allowing residents to advance in education. It now attracts 10,000 visitors annually for health and training courses, demonstrating how holistic, resident-led regeneration can bring lasting benefits.”

The Socio-Economic Impact of Housing

Social, cooperative, and public housing providers across the continent are committed to investing in renovation and new construction efforts, with a goal to renovate 4 million homes by 2030. These planned rates are currently being missed to varying degrees across the EU having been hard hit by COVID-19, the impact of the invasion in Ukraine and the on-going insecure outlooks in finance and construction.

While the reach of the housing crisis is clear, figures also underline the need to avoid further delayed investment in public, cooperative, and social housing. The sector has the potential to not only provide homes without driving speculation, but also help create economic stability, reduce inequality, and improve quality of life.

In Estonia, tax revenue from renovation construction projects has been quantified to be 32– 33% of the total renovation project costs, making state-subsidised renovation has been budget neutral in the last 10 years. In Austria, limited-profit housing helps households save €1.3 billion annually through lower housing costs, and in Belgium, access to social housing decreases the risk of poverty for households by 40%. Across the EU, eliminating housing inadequacy would pay for itself within 18 months through projected savings, including lower healthcare costs and improved social outcomes.