Rent prices are spiralling across Europe, with tenants in some cases paying up to 125% more than they did ten years ago. We spoke with Barbara Steenbergen, head of the International Union of Tenants (IUT) Liaison Office to the EU, about which policies best protect tenants — and what concrete actions the EU should prioritise in its upcoming housing strategy. Across Europe, high-quality, inclusive and genuinely affordable housing projects already exist — some of them laureates of the European Responsible Housing Awards.

How do you assess the current state of housing affordability in Europe?

Housing affordability is a major issue across Europe. Tenants in particular are affected by this dangerous development: rents in major cities have risen more than 45% on average, with the highest increase being 125% for a one-bedroom apartment between 2014 and 2023. This is a threat for the economy and society. We are in a state of emergency, where market shortages and excessive rent demands lead to a poverty trap for millions of people.

The EU has recognised the problem and will therefore, for the first time, present a European plan for affordable housing in December 2025 and provide funding for social and affordable housing. This is supported by the institutions: we now have the Commissioner for Energy and Housing, Dan Jørgensen from Denmark. The European Parliament has a special committee to combat the housing shortage, the European Commission has a taskforce for affordable housing, and there is a new pan-European investment platform that brings together the leaders of European institutions and financial institutions.

Is the growth of short-term rentals and private investment funds in the housing market making it harder for tenants to secure affordable homes?

There is fierce and devastating competition in the rental markets. This includes the rapid rise in rents, caused by speculation and the desire to maximise profits, leading to low and middle-income households being priced out of the markets.

On top of this, the extraction of regular rental housing through short-term and short-stay rentals aggravates the affordable housing shortage.

According to the current EU definition, households that spend more than 40 per cent of their disposable income on housing are considered overburdened. This is far too high; it should be a maximum of 25 per cent, otherwise there is a massive risk of poverty. It is not only ‘vulnerable’ households that are affected; it already extends deep into the middle classes. In booming areas where the jobs are, they already spend more than half of their income on housing costs.

Which policies have been most effective in protecting tenants and keeping housing affordable?

A successful and effective housing policy consists of a balanced mix of instruments: subsidies for social and affordable housing; public land availability for non- or limited profit supply; housing allowances; security of tenure by rent law, with open-ended rental contracts as the standard; rent stabilisation mechanisms and rent caps; public incentives to landlords for the quality and energy-efficient improvement of housing. 

Do you see positive national or local initiatives that could be replicated across Europe?

An example of implementation of the above measures in affordable, inclusive, resident-centred and high-quality housing projects can be found in the European Responsible Housing Initiative. Every two years, the European Responsible Housing Awards are presented, proving that it can be done! See the winners and shortlisted projects here!

What concrete actions should EU institutions prioritise to ensure affordable housing for all?

Social conditionalities and safeguards as well as technical assistance to cities and Member States with a focus on responsible long-term investment need to be at the centre of the new EU affordable housing plan. 

The IUT strongly advises implementing the principle of ‘housing cost neutrality’ in the funding conditions for housing renovation of the European Union. Housing cost neutrality after renovation (meaning that rent increases are at least balanced by energy savings of the same amount) combines the EU climate goals ideally with a socially just transition. It prevents residents and tenants being subject to displacement, gentrification and ‘renovictions’ (evictions by renovations) and fights energy poverty.

The European Investment Bank should reconsider their recent funding schemes for the provision of social and affordable rental housing. Loans should be preferably channelled to not-for-profit housing providers and cooperatives to ensure long-term affordability and robust stabilisation of the rental markets which are being derailed through massive price and rent increases. 

For a massive investment wave in social and affordable housing, the EU State aid rules must be revised. The current rules force Member States to limit access to social housing to ‘socially disadvantaged groups’. To overcome the crisis, it is important that large parts of the population get access to affordable housing. Moreover, public investment in social and affordable housing as key infrastructure should be exempted from the EU deficit rules.

Counteract financialisation of the housing market and sale of land and housing stock in Europe: the access of corporate finance and profit-oriented investors to European markets must be regulated. Money laundering and tax evasion by international real estate trading needs to be stopped through concerted actions at EU level. An EU transparency register on real estate transactions is the first step for de-financialisation. Europe is not for sale!

Barbara Steenbergen is a member of the Executive Committee of the International Union of Tenants (IUT) and head of the IUT Liaison Office in Brussels, where she represents the interests of the European tenant associations towards EU institutions. She is Chair of the Jury of the European Responsible Housing Awards. She also serves as Vice Chair of the Tenants’ Association of Bonn.

Founded in 1926, the IUT has been advocating for tenants’ rights at an international level for almost 100 years. It currently has 78 member organisations in 47 countries worldwide.