Commission considers revising State aid rules to improve access to affordable housing

The European Commission is seeking feedback on a revision of the service of general economic interest (‘SGEI’) State aid rules to address the issue of housing affordability. Significant investments are needed to bridge the investment gap for affordable housing. State aid measures can contribute to incentivising the necessary investments.

Any interested citizen, business, public authority or association can contribute by replying to the call for evidence and/or to the general public consultation questionnaire that were published last June 5. It is possible to contribute until 31 July 2025. The call for evidence and the public consultation are both available in all of the 24 official EU languages via the ‘Have your Say’ portal.

Revision of the State aid rules

Under the existing State aid rules, there are various ways for Member States to support access to housing. In particular, the SGEI rules allow Member States to implement social housing measures for the most disadvantaged persons without any compensation limit.

However, as recognised in the Commission’s Political Guidelines, the current State aid rules are not adapted to allow Member States to effectively tackle the various challenges related to housing affordability that go beyond social housing.

The targeted revision of the SGEI rules aims to address this need and thus contribute to  incentivise further investments in affordable housing. The revision also aims to simplify, update and clarify certain concepts in the rules.

Public consultation and call for evidence

The goal of the public consultation and the call for evidence is to gather insights and feedback from national, regional and local authorities, stakeholders and the public. This will help the Commission to assess, in a collaborative, transparent and inclusive manner, how the SGEI rules need to be amended to facilitate affordable housing investments.

The Commission will analyse the responses and publish a summary of the main points and conclusions.

The results of the consultations and of broader stakeholder engagement will feed into the ongoing review of the SGEI rules. More generally, the Commission will continue engaging with both citizens and businesses before finalising its review process.

Background

The issue of access to housing affordability is not confined only to lower income groups. It now also affects a wider section of society due to various factors, including rising demand in urban areas, increasing housing costs, a shortage in housing supply, an aging building stock, regional economic disparities, and tourism and short-term rentals.

In response to the acute housing crisis, the Commission has appointed Dan Jørgensen as Commissioner for Housing and has set up a Task Force on Affordable Housing to coordinate Commission workstreams on housing. The Commission will put forward a European Affordable Housing Plan in 2026 to complement Member States’, regional and local governments’ housing policies and initiatives, while respecting the principle of subsidiarity in the housing sector and considering the various interests of the many relevant stakeholders.

Among the key initiatives envisaged, the Commission will revise its rules on State aid, delivering on its promise to make it easier to finance energy efficiency and affordable housing.

More information: European Commission