European Living Sector Outlook 2024

POLICY RESPONSES

GEOPOLITICAL LANDSCAPE

In the post-COVID world, housing has assumed even greater significance from a societal standpoint across the EMEA region, as evident in the European Union's Eurobarometer survey data. In the upcoming year, we anticipate housing concerns to linger over geopolitical matters, particularly with the impending EU Parliamentary elections in June. Furthermore, the possibility of general elections looms in the UK and Ireland in 2024, and fresh elections are scheduled for March in Portugal. In response to the prevailing pressures in the housing market, governments across the EMEA region have implemented various measures, with a particular focus on supporting private renters and first-time buyers. However, these efforts have so far done little to alleviate the pervasive sense of crisis in many European housing markets. As public concern about housing has intensified, rental controls have become more prevalent. Similar to recent regulatory changes, the underlying intention is commendable, aiming to enhance affordability.

Nevertheless, international research on the subject generally asserts that the short-term affordability advantages resulting from such measures often lead to a weakened medium-term supply—precisely the opposite outcome that EMEA housing markets need. Ultimately, addressing housing pressures in the region entails expanding output and alleviating obstacles that hinder the delivery of such output. Consequently, we see alternative policy approaches such as income supports and planning reform (which should help supply), as preferable to implementing rent controls.

Similar to recent regulatory changes, the underlying intention is commendable, aiming to enhance affordability. "

8 LIVING OUTLOOK 2024

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