The European Commission has launched the Joint Working Group for Affordable and Sustainable Housing to develop practical tools for mobilising public and private investment and improving projects’ access to funding. More than 100 experts gathered in Brussels for its opening plenary. The Commission estimates that Europe needs around EUR 150 billion in additional housing investment annually to meet demographic pressures through new construction, renovation and repurposing existing buildings. The group will develop financing models that combine grants with guarantees, equity and patient capital. Its work will address bundling smaller projects and channelling finance to cooperatives, community land trusts and housing for students, older people and essential workers. Other priorities include financing construction innovation, such as modular and offsite construction, and simplifying and accelerating funding processes through digitalisation. These efforts address barriers arising from difficulties accessing financial support and unclear funding opportunities, rather than funding availability alone. Over the next 18 months, thematic subgroups and plenary discussions will develop blueprints, financing toolkits, templates and frameworks to help housing projects secure funding. The group operates under the European Energy Efficiency Financing Coalition and the Pan-European Investment Platform, bringing together financial institutions, public authorities and housing stakeholders. Participants include national and regional promotional banks that have already pledged a combined EUR 375 billion for social, affordable and sustainable housing by 2029.

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