The European Parliament this week adopted a sweeping set of recommendations to tackle the European housing crisis, a move welcomed by a Cypriot lawmaker who said the decision sends a strong signal that the EU is taking action to support young families and vulnerable households.

The report, prepared by the parliament’s Special Committee on the Housing Crisis, was approved by 367 votes in favour, 166 against and 84 abstentions, outlining a broad framework aimed at expanding housing supply, reducing costs and improving access to affordable homes across the European Union.

Cypriot MEP Michalis Hadjipantela, representing Disy and the European People’s Party, said he was satisfied with the outcome, highlighting an amendment he co-signed that places particular emphasis on supporting young people and families facing difficulties entering the housing market.

“For small states such as Cyprus, access to affordable housing is crucial for young families,” the MEP said.

“The decision sends a strong message that the EU is moving forward with substantive measures to protect citizens with low and middle incomes,” Hadjipantela added.

The amendment calls on the European Commission to take immediate initiatives to address the housing crisis affecting young people, with the aim of improving access to adequate and affordable housing.

The broader report urges coordinated EU action to tackle rising property prices and housing shortages, warning that millions of Europeans are facing precarious living conditions as a result of the crisis.

Lawmakers stressed that improving living standards requires ensuring decent housing conditions while strengthening the Commission’s Affordable Housing Plan.

The parliament recommended allocating dedicated funds for the renovation of residential buildings and improvements in energy performance, measures aimed at combating energy poverty and enhancing overall housing quality.

MEPs also stressed that all new homes should meet quality standards related to insulation, energy efficiency and indoor air quality.

The report further addresses the rapid expansion of short-term rentals, urging that upcoming legislation strike a balance between supporting tourism and ensuring access to affordable housing for residents.

Lawmakers said EU legislation should establish common objectives at European level while allowing member states, regions and local authorities the flexibility to design measures tailored to their own housing markets.

The recommendations also call for a stronger share of public and social housing in EU cities, aimed at improving affordability and increasing supply for vulnerable groups.

At the same time, the parliament strongly condemned squatting, describing it as the illegal occupation of homes and urging stricter measures to protect property owners.

MEPs also called on member states to strengthen tenant protections by ensuring fair rental conditions and preventing disproportionate rent increases.

In the area of fiscal policy, lawmakers advocated incentive-based tax systems to support low and middle-income households, including removing barriers faced by first-time buyers such as high registration fees.

They also proposed tax conditions that would make long-term rentals more affordable.

The report encourages greater EU investment in housing through improved coordination of existing funding programmes.

It also suggests reallocating unused resources from the Recovery and Resilience Plan to support the construction and renovation of social, public, cooperative and affordable housing.

MEPs further said that any revision of EU state aid rules should facilitate public investment in social housing while respecting the diversity of national housing markets across the bloc.

The parliament also called on the Commission to introduce a housing simplification package aimed at reducing bureaucracy in the construction sector.

This would include simpler permitting procedures and digital permit systems, with planning permits recommended to be processed within a maximum of 60 days.

Lawmakers also highlighted the importance of strengthening the construction and renovation sector, arguing that the EU must enhance its industrial sovereignty by scaling up innovative and sustainable building materials and technologies.

They urged the Commission to reinforce the single market for raw materials and introduce minimum “Made in EU” origin requirements for components used in EU co-financed projects.

The report also stresses the need to improve working conditions for skilled workers in the sector through training programmes and fair wages.

In addition, MEPs called for easier labour mobility across the EU, the mutual recognition of professional qualifications and, where necessary, the recruitment of skilled workers from third countries.

“A generation that cannot afford a home cannot build a future,” said said rapporteur Borja Giménez Larraz.

“Europe is short 10 million homes, rents are up by more than 30 per cent, and young people and families are paying the price,” he added.

“For the first time ever, the European Parliament is setting out a roadmap a housing simplification package, faster permits in 60 days, investment in skills, legal certainty and protection for property owners and tenants, the mobilisation of private and public investment, and stronger support for young people, families and people with disabilities,” Larraz explained.

“No more excuses,” the MEP stressed. “Member states must now deliver,” Larraz said.

Housing committee chair Irene Tinagli said the issue had become a major social challenge across the bloc.

“Housing is a fundamental social priority, and in the past year our committee has demonstrated that the housing crisis in the EU is real, affecting people in all member states,” Tinagli said.

“Today, the European Parliament is taking action to address this urgent social and economic crisis by putting forward practical and innovative solutions,” she added.

“The housing crisis has far-reaching consequences for the quality of life of Europeans, impacting people’s health, social cohesion, and access to economic opportunities,” Tinagli said.

“EU action is essential to restore balance and fairness in the housing market, because everyone deserves a place to call home,” she concluded.

The decision comes as Cyprus itself faces mounting pressure in the housing market, an issue Interior Minister Constantinos Ioannou has described as having a “profound impact” on society.

“Without access to affordable and decent housing, we cannot attract and retain workers, support families and strengthen Europe’s competitiveness,” Ioannou said during remarks to journalists in Brussels earlier this year.

He stressed that while housing policy remains largely a national responsibility, the causes of the crisis extend beyond national borders.

“It is now clear that a coordinated European response is required and addressing affordable housing is not a social expense, but an investment in the resilience and future of Europe,” Ioannou said.

Cyprus plans to promote four pillars for affordable housing during its upcoming EU presidency, aligned with the European Affordable Housing Plan.

These include increasing supply by removing obstacles and speeding up permits, mobilising public and private investment, providing targeted support including measures against energy poverty, and protecting vulnerable households.

Ioannou also acknowledged that short-term rentals have added pressure to the housing market as property owners increasingly opt for tourist rentals instead of long-term leases.

“If we don’t increase supply, we are just raising prices. If we limit ourselves to just providing financial support to people without increasing the supply of housing, we will just push prices even higher,” he said.

“The solution lies in the right balance more homes on the market and targeted assistance to those in real need,” Ioannou added.