European Responsible Housing Finance Summit 2024

Date

November 18, 2024 → November 18, 2024

City

Milan

Country

🇮🇹Italy

Organiser

Housing Europe

Website

https://www.housingeurope.eu/event-1916/european-social-and-affordable-housing-finance-summit

Summary

The European Responsible Housing Finance Summit aims to address the pressing challenges of sustainable and affordable housing in Europe. Organized by Housing Europe and its members, the summit brings together stakeholders from various sectors to discuss financing strategies and innovative solutions for housing providers, municipalities, and companies. Key topics include the need for a substantial increase in investment to bridge existing funding gaps, the importance of collaboration between public and private sectors, and the role of green financing. Participants explore best practices to stimulate support for affordable housing projects while navigating the complexities of policy and financing mechanisms. The summit also highlights regional initiatives and challenges faced by different countries, emphasizing the need for coordinated efforts to combat homelessness and ensure access to safe housing. Overall, the event serves as a platform for sharing insights and fostering collaboration to tackle the ongoing housing crisis effectively.

Investment Gaps and Funding Needs

1. Europe's social and affordable housing sector faced a €57bn annual investment gap pre-COVID, requiring a 25% increase in investment.
2. An additional €13bn per year is needed for renovation to meet Paris emissions reduction goals (EPC Label B and A by 2050).
3. The European Investment Bank and EU have made multiple funding systems available, complemented by Structural Funds and national/local support schemes.
4. The EU's Recovery and Resilience Facility has invested €21.3bn in social housing, demonstrating commitment to addressing the housing crisis.
5. The European Commission's DG Employment manages the ESF Plus, investing over €10bn in social housing.

Innovative Financing and Governance Models

1. Denmark established revolving funds in housing associations with a 30-year loan repayment period and government lending for start-up.
2. Ireland's cost rental model targets moderate incomes (up to €60,000) for affordable housing, designed to be self-financing long-term.
3. The Land Development Agency in Ireland aims to create 50,000 affordable homes in the next few years.
4. Italy's proposed investment platform aims to develop 20,000 dwellings over 10 years with €4.9 billion investment, 30% public and 60% private funding.
5. The nwb Bank in the Netherlands funds 23% of its lending to social housing, guaranteed by a state-backed fund.

Regional Initiatives and Challenges

1. In the Czech Republic, Regional Expertise Centers supported over 200 projects with 3,500 apartments applying for funding from the housing investment fund.
2. The French social housing sector needs €10-16 billion annually for energy refurbishment and new offerings.
3. Spain lacks 1.5 million dwellings due to the 2008 real estate crisis, affecting young people's access to housing.
4. In Portugal, the state manages social housing at very low rents (€80/month on average), which is unsustainable.
5. Slovakia has 92% owner-occupied housing stock, with only 3% public rental stock.

EU Initiatives and Regulations

1. The EU's Renovation Wave and New European Bauhaus initiatives aim to drive renovation of existing housing stock.
2. The EU's Green Deal sets a target of EPC Label B and A for all buildings by 2050.
3. The European Commission's proposed affordable housing plan aims to eliminate homelessness by 2030.
4. The EU's Construction Products regulation will introduce digital product passports for enhanced sustainability.
5. The EU's InvestEU program offers a €20.26 billion guarantee to address housing finance needs.

Social Housing Models and Challenges

1. Austria's public sector reduces land costs and sets cost rental signals on the market to strengthen competition.
2. Ireland's approved housing body sector was chosen as the delivery partner for the government's cost rental policy.
3. Italy needs a multi-year social and affordable housing plan to address 5.2 million people suffering from housing cost overburden.
4. In the Netherlands, social housing associations invest €10.5bn annually in maintaining 2.2m dwellings.
5. UK registered providers are the main developers of social housing, reinvesting profits from market rent and sale.

International Organizations and Programs

1. The Council of Europe Development Bank (CB) has provided €8bn for social and affordable housing since 2010.
2. The CB's Home project in Ukraine has provided over 2,000 families with new homes.
3. The CB's Regional Housing Program (RHP) delivered over 11,000 homes to 36,000 displaced people in the 1990s.
4. The European Commission's European Platform on Combating Homelessness supports a multi-stakeholder approach.
5. The EU's affordable housing initiative supports lighthouse projects for social and affordable housing.

Financial Instruments and Challenges

1. The EU's Social Bond framework aims to develop a social taxonomy parallel to the environmental one.
2. The European Investment Fund invested in social housing through equity, but faced alignment challenges.
3. The French social housing sector has a sustainable demand for finance through long-term savings funds and specific banks.
4. In Italy, Casa Deposito has invested in social housing for 15 years, focusing on senior housing for people aged 65+.
5. The UK government has committed a £4bn social housing decarbonization fund over the next decade.

Housing Ecosystems and Partnerships

1. Housing Europe launched a Housing Finance Working Group in June 2023 to develop capacity for innovative financing schemes.
2. The EU's Next Generation Neighbourhoods aim to create thriving communities through innovative financing and governance.
3. Italy's proposed investment platform relies on robust commitment from central, regional, and local authorities.
4. The European Investment Bank and national promotional banks are essential for housing finance due to their local knowledge.
5. The EU's InvestEU program brings together the EIB, national promotional banks, and financial intermediaries.

Sustainability and Energy Efficiency

1. The social and affordable housing sector needs an extra €13bn per year for renovation to meet Paris emissions reduction goals.
2. The EU's Construction Products regulation will mandate carbon footprint and repairability for construction products.
3. Dutch social housing associations face challenges balancing investment in sustainability with affordability goals.
4. The French social housing sector needs huge investments to meet climate change requirements.
5. The EU's Green Deal sets a target of EPC Label B and A for all buildings by 2050.

Urban Regeneration and Land Use

1. Italy's proposed investment platform aims to deliver socially sustainable housing with zero land consumption and urban regeneration.
2. In Italy, grants are needed for maintenance and renovation of old buildings in small towns.
3. In Slovakia, the state Housing Development Fund provides 100% financing for public housing development.
4. The Land Development Agency in Ireland aims to reutilize state lands for affordable housing.
5. Italy's social housing sector needs 250,000 more dwellings for households earning below €20,000/year.

Housing Affordability and Access

1. In Spain, only 16% of those under 30 can afford to leave their family's home due to high housing prices.
2. Italy aims to provide 50% social housing with average rent of €810 to achieve social mix.
3. Portugal faces challenges in building 59,000 new units in the next 8 years due to the housing crisis.
4. Ireland's cost rental model creates an alternative to home ownership for moderate-income households.
5. The French social housing sector has a sustainable demand for finance due to huge investment needs.

Future Outlook and Challenges

1. The European Commission plans a first-ever European affordable housing plan with four key elements.
2. The EU's taxonomy focuses on environmental criteria but lacks a clear definition of social housing.
3. The EU's RI program had limitations, such as a long and complex administrative process taking 1.5 years to notify.
4. The lack of investment in social and public housing has resulted in growing waiting lists for affordable housing across Europe.
5. In Lombardy, Italy, social housing has changed from a tool for the working poor to a welfare tool for 50% of public housing residents.

The European Responsible Housing Finance Summit emphasizes the urgent need for innovative and collaborative solutions to the housing crisis, focusing on sustainable and affordable housing for vulnerable communities through improved policies and financing models.

• 00:00 🏡 The European Responsible Housing Finance Summit highlights the urgent need for innovative, collaborative solutions to the housing crisis, focusing on sustainable, affordable housing and social inclusion amidst economic challenges.
• The European Responsible Housing Finance Summit focuses on sharing knowledge and exploring financial instruments for sustainable housing, energy transition, and cooperative values amidst current economic and environmental challenges.
• The summit emphasizes the urgent need for collaborative, innovative solutions to address the housing crisis in Europe, focusing on social, affordable, and sustainable housing that meets diverse community needs.
• A new legislative framework in 2022, enhanced by 13 regulatory reforms and initiatives like the My Home project, aims to increase housing accessibility for young people and low-income families in Greece while addressing underutilized properties and promoting sustainability.
• Greece is launching small-scale affordable housing projects and leveraging state-owned properties through partnerships with private developers to sustainably expand its social housing stock while seeking collaborations with European institutions to address investment gaps and enhance housing policies.
• Rising housing prices and limited social housing supply are exacerbating affordability issues, impacting demographics, labor mobility, and increasing social exclusion and homelessness.
• Poverty is fundamentally about social connections rather than just financial resources, and lacking a home alienates individuals from society.
• 36:38 🏠 Europe is prioritizing affordable housing through collaborative policies and funding to combat the housing crisis and support vulnerable populations.
• The European Commission is committed to addressing affordable and social housing through a comprehensive plan, leveraging partnerships and funding mechanisms to tackle supply issues and homelessness across member states.
• The European Responsible Housing Finance Summit emphasizes the urgent need to address the housing crisis in Europe through collaborative efforts and effective financial tools, particularly for vulnerable groups.
• The European Responsible Housing Finance Summit emphasizes the urgent need for coordinated housing policies and partnerships to address the housing crisis and homelessness affecting low- to middle-income individuals across Europe.
• Collaboration across European, national, and local levels is essential to develop effective housing policies and address the growing affordability crisis in Europe, particularly in Italy.
• Urban areas face a housing shortage, with a significant portion of rental housing provided by limited profit sectors, which offer affordable options and foster competition against for-profit housing, ultimately benefiting the middle and lower classes.
• Public intervention is necessary to clarify to rating agencies the differences in risk between housing development and affordable housing, as misconceptions can lead to restrictions on guarantees.
• 01:27:37 🏡 European housing finance strategies are evolving with models from Vienna and Ireland promoting affordability, while Italy seeks collaboration for 20,000 new social dwellings over the next decade.
• Vienna's limited profit housing sector has successfully reduced for-profit rents through competition, while Ireland is implementing a cost rental model to provide affordable housing for moderate-income households.
• A new long-term rental model in Ireland aims to provide affordable housing for middle-income households, supported by approved housing bodies to increase supply and promote cost recovery in the sector.
• Old army barracks are being repurposed for affordable housing in Ireland, utilizing state funding and countercyclical support to create cost rental and for-sale homes while addressing sustainability and social impact challenges.
• The Danish housing finance model relies on a revolving fund system where housing associations repay loans with fixed installments, creating a sustainable funding mechanism for new homes without relying on government subsidies.
• An investment platform proposal aims to address Italy's urgent need for social and affordable housing by aggregating financial resources and fostering collaboration among public and private sectors to develop 20,000 dwellings over ten years.
• The proposed financing platform aims to enhance affordable housing in Italy through long-term policies, European financial tools, and a focus on social and environmental sustainability.
• 02:22:53 🏡 The summit highlighted the need for improved policy frameworks and financial strategies to enhance access to finance for social housing amidst various challenges faced by financial intermediaries and regional initiatives.
• The panel will address challenges faced by financial intermediaries in supporting housing providers and explore how policy frameworks and regulatory changes can enhance access to finance for social housing.
• NWB Bank, a Dutch promotional bank, plays a crucial role in financing social housing, but faces challenges with the taxonomy and recognition of its clients' green activities due to their exemption from CSRD requirements.
• The current housing finance system faces challenges due to low guardrails affecting investor perceptions, limitations from state aid regulations excluding affordable housing, and the need for a positive social investment framework to better define and promote social bonds.
• Regional expertise centers in Czechia have significantly improved municipalities' access to affordable housing funds, resulting in over 200 projects and 3,500 apartments through enhanced support and resources.
• The financing for affordable housing through EU funds faces challenges due to restrictions on combining grants and loans, necessitating a reevaluation for better long-term investment strategies.
• Casa Depositi, Italy's promotional bank, has been investing in social housing through private capital for 15 years, focusing on long-term sustainability and returns while addressing the needs of the gray market and expanding into senior and student housing.
• 03:22:06 🏡 Europe must mobilize €26 billion annually for social housing through collaboration, innovative financing, and governance reforms to meet diverse housing needs and enhance sustainability.
• Funding structures for housing projects must align with long-term business plans to effectively address the diverse and significant housing needs across Europe.
• Collaboration between the European Investment Bank and national promotional banks is crucial for developing effective housing solutions, leveraging local knowledge and financial instruments to address diverse regional needs across the EU.
• The discussion highlights the challenges and opportunities in housing finance across Europe, emphasizing the need for collaboration, capacity building, and innovative financing models, particularly in member states lacking effective financial institutions for housing.
• Europe needs to mobilize approximately 26 billion euros annually for social housing financing through a combination of grants and long-term loans to address significant refurbishment and new housing demands.
• The European Commission aims to modernize the construction sector through regulations and digitalization to enhance housing finance demand and improve sustainability.
• Member states must adopt governance models to enhance social affordable housing finance, addressing issues like youth access, high housing costs, and the need for increased public investment and construction of new dwellings.
• 05:13:23 🏠 Southern European countries are in a housing crisis requiring collaboration for funding and urban regeneration, while a European alliance is essential to tackle affordability and promote sustainable housing solutions.
• Southern European countries face a housing crisis due to decreasing revenues and increasing demand for affordable housing, necessitating collaboration with regional and European stakeholders for structural funding and urban regeneration.
• European countries are facing significant housing challenges, including affordability, depopulation, and underutilization of existing properties, while planning substantial investments to address these issues.
• A European alliance is needed to secure funding for energy-efficient housing in cities and small towns, addressing the unique financial challenges faced by different regions while promoting social housing and sustainable development.
• European countries, particularly Slovakia, face challenges in housing policy despite having funding and frameworks, as they struggle with a lack of interest in developing rental housing and the complexities of renovating existing stock.
• The European Investment Bank is expanding its financing for affordable and sustainable housing across more countries, emphasizing the need for strong frameworks, clear definitions, and financial sustainability to support social housing initiatives.
• Europe has faced continuous housing crises since the 19th century, but has the capacity to address these challenges through regulatory frameworks and coordinated financing efforts, particularly for vulnerable populations.
• 06:00:09 🏡 Innovative financial solutions and collaboration are crucial to tackle the European housing crisis, focusing on marginalized communities and sustainable, affordable housing for all social classes.
• Peter Surak from the ER Group highlights the importance of addressing housing issues in Eastern Europe through innovative financial solutions and partnerships, particularly for marginalized communities like Roma and refugees, while emphasizing the need for stable regulatory frameworks to attract long-term investment.
• Collaboration between financial institutions, grassroots organizations, and public sectors is essential to effectively support vulnerable populations in addressing the housing crisis and ensuring investments serve the public interest.
• Milan is investing in the renovation and energy efficiency of public housing to address high living costs and social challenges, aiming for net-zero energy buildings while also expanding social housing for middle-class families.
• Increased public and private funding, alongside innovative financing methods like crowdfunding, is essential for housing associations in the Netherlands to address sustainability challenges and maintain affordability for tenants amidst rising energy costs.
• The UK faces a significant housing supply gap, with over a million people on waiting lists, while the social housing sector grapples with challenges like fire safety, damp issues, and the need for decarbonization, necessitating careful prioritization of investments and development amidst rising costs.
• The European housing crisis requires a collaborative, innovative, and investment-driven approach to create affordable housing solutions that address the needs of all social classes, particularly the middle class and vulnerable populations.
• 07:12:03 🌍 Gratitude was shared at the European Responsible Housing Finance Summit, concluding with thanks to organizers and an announcement for next year's event in Prague.
• Gratitude is expressed to attendees and organizers for the event held in a remarkable location despite the fog.
• The event concluded with acknowledgments for the organizing team and an announcement of next year's summit in Prague.