At an event by the European Policy Centre (February 25, 2025), Mario Nava from the European Commission’s Directorate for Employment, Social Affairs, and Inclusion insisted that housing is not just a market problem, but also a social one, with direct consequences on labour mobility, demography, and the ability to become independent.

This is why we advocate for the European Commission’s Housing Taskforce, with key priorities outlined by Matthew Baldwin, Deputy Director-General of DG ENER: state aid, investment and funding, speculation and financialisation, as well as short-term rentals.

Yet, one crucial element must come across more in the conversation: strong conditionality.

While we hear institutional banks highlighting the “Prodi dilemma”—the challenge of aggregating small-scale social infrastructure projects to attract investment—the question remains: how do we ensure that financing truly serves those in need, preventing financialisation and speculation in the long-term?

Housing Europe believes that investment must come with safeguards to keep social and affordable housing accessible for decades. And we know that this is possible because it is already being done. 

Our President, Bent Madsen, highlighted how Denmark has successfully ensured stability in its social and affordable housing sector for over 50 years through the National Building Fund (Landsbyggefonden).

✅ Self-financing instead of market-driven cycles
Unlike many housing investment schemes that fluctuate with economic cycles, the Danish model ensures stable, long-term financing. The Fund prevents pro-cyclical investments—where housing supply peaks in good times but collapses during downturns—by maintaining consistent funding for renovation and construction.

✅ Tenant-funded, solidarity-based
The National Building Fund, created in the 60s’, is not financed by public money but by tenants themselves. Once the mortgage loans used to finance the initial construction of housing estates are repaid, those repayments are reinvested into the sector, creating a circular funding mechanism that ensures ongoing financial sustainability.

✅ Supporting affordable rents and strong communities

A model to learn from, what’s not to like? Watch the full session of the EPC.