News 2026

On 9 September, the European Commission presented its Affordable Housing Act package: a proposed regulation and a non-binding recommendation to increase housing supply. It follows the European Affordable Housing Plan adopted in December 2025. The Regulation still requires approval by the European Parliament and the EU Council.

The proposal would establish a common framework for identifying areas under housing stress and assessing restrictions intended to protect housing affordability. These include restrictions on short-term rentals outside a host’s primary residence and on property acquired or used for purposes other than a primary residence. Authorities would need evidence to justify measures, which must be proportionate, transparent and regularly reviewed.

The accompanying Recommendation focuses on building and renovating more homes. It encourages local housing acceleration plans, faster and digital permitting, better use of existing buildings and land, and modern construction methods. It also connects housing delivery with transport and essential infrastructure.

This focus reflects priorities already advocated by FIEC: simpler permitting, investment, innovation and construction skills. For the sector, the next step is to turn these priorities into viable projects and remove the practical obstacles that delay affordable homes.

Click here to read FIEC's housing priorities.

Access proposed regulation via this link.