More than 100 finance and housing specialists met in Brussels on Monday to launch an EU-backed expert group intended to develop practical ways to increase investment in affordable, energy-efficient housing.
Affordable housing is an “immediate concern” for 40% of Europeans, rising to 51% in cities, the European Commission informed in a release on Tuesday.
Europe needs to invest about €150 billion more in housing each year to meet demographic pressures, it estimated.
The Commission also said improving energy efficiency in homes can reduce household bills, adding that every euro invested generates an estimated €12 in savings for households.
The new forum — the Joint Working Group on financing of sustainable and affordable housing — brings together public authorities, financial institutions and investors to develop tools that help housing projects secure funding.
Representatives from the European Investment Bank and the European Bank for Reconstruction and Development attended the opening plenary, and both institutions have increased their financing for affordable and sustainable housing and intend to build on that trend.
National and regional promotional banks were also represented after pledging a combined €375 billion in investment in social, affordable and sustainable housing by 2029.
What the experts will work on next
Participants included industry and housing bodies such as Efficient Buildings Europe and Housing Europe, alongside advisers, consultancies, research organisations, environmental NGOs and other industry representatives, according to the Commission.
The experts will work on funding models that mix grants with other forms of finance such as guarantees, equity and “patient capital” — long-term investment that does not require quick returns.
They also discussed approaches to bundling smaller projects to help them access finance, and channelling funding towards groups including cooperative and community land trust housing, as well as students, senior citizens and essential workers.
Other topics include funding for construction innovation such as modular and off-site building, and simplifying and speeding up funding processes through digitalisation.
The working group has been set up under the European Energy Efficiency Financing Coalition and the Pan-European Investment Platform, and is expected to meet over the next 18 months to develop tools such as templates, frameworks and financing toolkits for housing projects.
