EU Affordable Housing Act faces opposition from Italian industry

The European Commission has introduced the Affordable Housing Act, a regulation designed to combat the housing crisis by empowering member states and local administrations to intervene in areas where demand significantly exceeds supply. Part of the European Plan for Affordable Housing, the proposal targets low-income families, youth, students, workers, and the middle class.

The regulation establishes common criteria for identifying high-pressure housing areas and provides a framework for authorities to evaluate restrictions on short-term rentals, second homes, and vacant properties. These measures must be justified by local conditions and adhere to principles of necessity, proportionality, and non-discrimination. Additionally, a recommendation aims to increase the supply of social and student housing through efficient land use, building recovery, and simplified urban planning procedures.

In Italy, the proposal is currently under review by the Senate's EU Policies Commission. However, the measure has faced criticism from industry representatives. Antonio Ciucci, president of ANCE, described the regulation as a “premature and inadequate response,” citing the misalignment between supply and demand. Alessandro Simonetto, vice president of Fimaa, argued that while the objectives are valid, the measures are “entirely disproportionate” and rely on overly broad, automatic criteria that ignore the specificities of the Italian market.