INREV position paper on the European Affordable Housing Plan

INREV has published a Position Paper on the European Affordable Housing Plan, welcoming the European Commission’s initiative to place housing at the centre of Europe’s social, economic, and environmental agenda.

The paper calls for a pan-European housing strategy that aligns public policy with private capital, ensuring certainty across economic cycles and enabling delivery at scale.

INREV emphasises that housing should be viewed as strategic infrastructure—fundamental to Europe’s resilience, productivity, and social cohesion. Institutional investors such as pension funds and insurers are well-positioned to contribute, managing long-term capital that can help finance affordable and sustainable housing.

Since June, INREV has submitted four consultation responses to the European Commission on two housing-related topics:

1. The European Affordable Housing Plan seeking to understand the root causes of Europe’s housing crisis and to identify effective solutions;
2. The revised Services of General Economic Interest (SGEI) Decision aiming to expand the scope of State aid rules for SGEI to include affordable housing, distinguishing them from traditional social housing schemes.

Encouragingly, the Commission has shown a strong commitment to this agenda, with the appointment of a dedicated Energy and Housing Commissioner for the first time. Despite significant private capital available for housing, regulatory barriers—such as slow and unpredictable permitting procedures and inconsistent land-use and planning systems—continue to impede delivery.

Together with EPRA and other associations, INREV speaks on behalf of the real estate investment sector, emphasising the value of public-private cooperation. Following the Commission’s request, INREV members provided ten industry case studies  that illustrate how institutional investors and investment managers across Europe are partnering with public authorities to deliver affordable and sustainable housing, mobilise long-term capital, and overcome regulatory and viability barriers at the local level.

To deepen this collaboration, INREV is engaging with the EU Taskforce for Affordable Housing, which brings together experts from the European Commission. Plans are underway for a closed-door workshop in Q1 2026 where institutional investors and investment managers will meet directly with taskforce members to discuss practical pathways, challenges, and support needs.

Another key area of discussion concerns State aid and how public resources, such as land contributions, tax relief or rental guarantees, can be used to support affordable housing without distorting competition. INREV advocates for an approach that targets genuine market failures while ensuring that support measures are accessible on equal terms to all market participants.

INREV is also working closely with Build Europe and IVBN to ensure unified and coherent private sector views. A key concern is preventing displacement effects, where subsidies to the social housing sector could crowd out private investment in the affordable segment—undermining the very goal of expanding supply.

Although housing policy remains largely under the competence of Member States, the EU plays an essential role in setting the framework for state aid, fostering coherence, sharing innovation, and unlocking cross-border solutions. INREV continues to highlight examples that demonstrate how private capital can partner effectively with the public sector to deliver more—and better—affordable housing.