Rising house prices in Europe have become a significant concern over the past decade. Across the EU, housing prices have risen 2.9% on average, reaching as high as 17% in some countries. This issue has become prevalent to the MEP and has been placed under the remit of the LIBE committee.
The BBC interviewed a delegate to get a look into the state of the debate.
The delegate was asked about the state of their committee room, the sides being made, and the issues being brought to the table. The delegate described the rift that had been created within the committee regarding the effect of immigration on rising house prices. Furthermore, the delegate stated how voting blocs have been made regarding the issue.
Later, the delegate was questioned on how the EU might help decrease housing prices, more specifically regarding younger people in urban areas. The delegate responded that they hope to address this by increasing student accommodation near educational zones, with potential scholarships provided by schools, supported by the EU’s Shape EU fund. Additionally, they mentioned the plan to increase the minimum wage for students to help them afford rent and mortgages.
Concerning rising house prices fueling tension in Europe and what the EU could do to combat this, the delegate believed the biggest step would be combating monopolies, proposing that companies owning over €500 million in housing assets should be restricted. They emphasized the need to prevent artificial price manipulation for profit, calling it unfair to middle- and lower-class citizens.
Moreover, since foreign investments driving house prices up, the delegate explained that while the EU should allow foreign companies to continue buying houses, they should be required to rent them out or put them back on the market, rather than holding them to increase their value. They also advocated for increasing taxes on houses that remained vacant for over six months.
Finally, we debated whether housing prices should take priority over market regulation. The delegate argued that market regulation could address the housing crisis but stressed that shelter was a fundamental human right, one the EU has failed to deliver adequately so far. They hoped the LIBE Committee would ensure this right for all EU citizens.
Tom Egan, BBC