Last month, the Taskforce on Affordable and Sustainable Housing (TASH) submitted critical feedback to the European Union as part of a call for evidence regarding the EU’s development of its first-ever affordable housing plan. The initiative aims to address the housing crisis affecting millions across Europe, but TASH’s response highlighted significant gaps that demand attention.
The Missing Piece: Investor Impact
While the EU plan focused on unlocking private investment to increase affordable housing supply, it barely addressed the risks and opportunities of this approach. TASH’s submission emphasized a crucial oversight: the impact of large-scale investors on housing affordability had been largely overlooked in the planning process.
What TASH’s Research Revealed
The submission presented compelling evidence about the current state of European housing investment:
- Approximately $1.5 trillion in residential assets were under management by institutional investors in Europe
- Financialization had significantly undermined housing affordability and security of tenure
- Only 1% of real estate companies globally reported on affordability metrics
- Investor activity contributed to rent increases, displacement, and gentrification
Key Recommendations for the EU
TASH provided specific recommendations to strengthen the affordable housing plan:
Accountability and Standards: Develop accountability mechanisms that integrate human rights and climate standards into housing investment frameworks.
Transparency Requirements: Create disclosure requirements for investors, asset managers, and developers to ensure greater transparency in housing market activities.
Aligned Funding: Ensure public funding flows only to investors whose practices align with affordable housing goals.
Comprehensive Impact Assessment: Address both positive and negative impacts of private investment in the housing sector.
The Path Forward
TASH emphasized that the EU Affordable Housing Plan represented a crucial opportunity to build a resilient platform providing housing for all while respecting planetary boundaries. However, success required acknowledging the dual role of private investment, implementing strong safeguards and standards, and prioritizing human rights alongside climate goals.
The submission called on the EU Housing Taskforce and other relevant agencies, including the European Investment Bank (EIB) and the European Parliament, to incorporate these considerations to ensure the plan would truly deliver affordable, sustainable housing for all Europeans.
TASH is a multistakeholder initiative transforming global real estate investment to align with human rights and planetary boundaries. The coalition brings together the Institute for Human Rights and Business, The Shift, Predistribution Initiative, International Union of Tenants (IUT), World Benchmarking Alliance, and other organizations working toward sustainable housing solutions.
