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HOUSING in the EU
The potential for developing Community Land Trusts in Europe
Brussels 2 July 2013
alice.pittini@housingeurope.eu

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What is CECODHAS - Housing Europe?
CECODHAS - Housing Europe is the
federation of cooperative, public,
social housing
… a network of national and regional
housing federations of housing
organisations.
Together the 43 members in 18
European members States manage
25 million dwellings which represent
12% of the total housing stock in the
EU.

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What we do
Our members work together for a Europe which
provides access to decent and affordable housing for
all in communities which are:
 socially,
 economically and
 environmentally sustainable…
…and where all are enabled to reach their full
potential.

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Housing bubble at the heart of current crisis
 Subprime crisis in the US
triggered the financial crisis
 Burst of housing bubble in the
US but also Ireland, Spain…

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Main factors
 Increase in house prices up to
the crisis
 Shortage of affordable housing
Nominal house prices increase

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Mortgage indebtedness in Europe
Residential mortgage debt to GDP ratios in the EU 27
EU average:
from 32% in
1998 to 52.4%
in 2010

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Cost of housing in Europe
 8% of Europeans and a third of
Europeans at risk of poverty spend
more than 40% of their budget on
housing
 8% live in severe material
deprivation
 17% Europeans faced either utility or
rent/mortgage arrears, or both in
2011 (14% in 2007)
 6% Europeans thought it was quite
or very likely they will have to leave
their accommodation within the next
6 months because they can no
longer afford in 2011 (4% in 2007)

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Housing needs in the EU
 In France 1.7 million pending social housing demands, and
yearly construction is 27.5% below the level required to
meet housing needs.
 In Spain, 300 000 households are being evicted, and it is
estimated that 4 million people stopped warming their
homes because they could no longer afford it.
 In England social housing waiting lists increased
constantly from about 1 021 000 in 1997, to over 1.8
million households in 2011
 the number of those in need of local authority housing in
Ireland has increased by 75% since 2008, from 56 000
applicants to 98 000.

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Issues raising from the crisis
 Raising poverty and inequalities as consequence of the
crisis = pressure on SH sector
 Including ‘working poors’ – more vulnerable middle
classes
 Decreasing public support (direct and through taxation)
 Difficulties in access to credit

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Housing markets diversity in the EU
Tenure split, UE 27

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Trends in tenures
Home-ownership in European OECD
countries (1980-2004)
Social housing in selected
EU countries (1980-2008)

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Social rental housing in the EU27
 Largest in NL,
followed by AT
and DK.
 UK, FR, SW and
FI also have a
large
social/public
housing sector
 On the
contrary, no
rental social
housing in EL,
very small
share in CEE as
well as PT, ES

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Different providers usually co-existing
Public (municipalities, publicly owned companies)
often retreating from new construction due to budget constraints
often focusing on the poorest/most vulnerable
Private (mainly not for profit/limited profit organisations, but increasingly also
commercial developers)
In most cases ‘registered’ or ‘approved’ providers acting on not for profit basis
In some countries also ways to mobilise (temporarily) dwellings owned by private individuals or
commercial developers for social goals
Cooperatives sometimes market actors, sometimes social role (special case Eastern Europe)
Providers of social housing

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Cooperative housing
Note: figures only refer to CECODHAS members
Share of dwellings in housing cooperatives out of total national
housing stock
0% 5% 10% 15% 20% 25% 30%
France
Belgium
Italy
Spain
Germany
Hungary
Estonia
Denmark
Austria
Norw ay
Sw eden
Czech Republic
Poland

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Cooperative housing in a nutshell
 A housing coop is a housing business in the form of a consumer
cooperative mutually owned by its members, which operates in
accordance with the Cooperative Principles and Values. democratically
controlled by their members, according to the principle of “one
person, one vote”.
 Equity model can be: Individual ownership = the resident member
holding full (most common in Eastern Europe), or partial title to the
housing unit.
Or collective ownership= the cooperative owns units and common
parts and members receive a contract, right to occupy the individual
housing unit on a permanent basis.
 Non-equity model (or rental coop): the member has no ownership
stake, he pays a rent and has to surrender the housing unit back to the
cooperative if he leaves. Non-equity cooperatives are usually non-
profit. In many parts of Canada and the United States, Germany, also
Austria, Danmark, Belgium, Switzerland

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Are there other ways?
 Co-housing
 Building Communities (Germany)
 Self-build experiences
 … CLTs? Have the advantage of combining long-term affordability,
community involvement and cohesion, partnership at local level, not
only housing but a range of local initiatives/services

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3 MAIN EUROPEAN UNION POLICIES3 MAIN EUROPEAN UNION POLICIES
• COHESION
• ANTI-POVERTY
• SOCIAL PROTECTION
• SSGIs
• COHESION
• ANTI-POVERTY
• SOCIAL PROTECTION
• SSGIs
• INTERNAL MARKET
• COMPETITION
• STATE AIDS
• VAT RULES
• INTERNAL MARKET
• COMPETITION
• STATE AIDS
• VAT RULES
• ENERGY
• ENVIRONMENT
• WATER
• LAND protection…
• ENERGY
• ENVIRONMENT
• WATER
• LAND protection…
• EU STANDARTS
• EU LEGISLATION
• RESEARCH
• EU FUNDS ?
• GREEN VAT ?
• EU STANDARTS
• EU LEGISLATION
• RESEARCH
• EU FUNDS ?
• GREEN VAT ?
• LEGISLATION
• EU FUNDS
• OPEN METHOD OF CO-
ORDINATION (OMC)
• BEST PRACTICES
• LEGISLATION
• EU FUNDS
• OPEN METHOD OF CO-
ORDINATION (OMC)
• BEST PRACTICES
• LEGISLATION
• CONTROL
• NOTIFICATION
• DISPUTE – ECJ RULING
• LEGISLATION
• CONTROL
• NOTIFICATION
• DISPUTE – ECJ RULING
HOUSING POLICY
« FRIENDLY »
HOUSING POLICY
« FRIENDLY »
HOUSING POLICY
« FRAMELY »
HOUSING POLICY
« FRAMELY »
HOUSING POLICY
« COSTLY »
HOUSING POLICY
« COSTLY »
SOCIALSOCIAL
ENVIRONMENTALENVIRONMENTAL
ECONOMICECONOMIC

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 More attention is given to housing in the framework of
the European economic governance: recognition that
dysfunctionalities of housing markets are an important
cause of the crisis
 The European Semester 2013: 8/14 country in-depth
reviews concern the housing market: UK, ES, FR, IT, NL,
SI, FI, SE, DK
 “Turning to households, deleveraging pressures are visible in a
number of Member States and are mainly linked to pre-crisis
housing market upswings. Downside risks for household
balance sheets and consumption are linked to potential
further corrections in housing markets.”
Housing in the European Semester

19. EU opportunities: Cohesion policy
 Structural Funds; period 2007-2013: 9 billions € potentially eligible for housing
energy upgrade, and 4 billions for urban renewal and housing for marginalised
community. Beginning of 2012, less then 2 billions had been invested.
 Next period: housing fully eligible for ERDF funding!
Energy efficiency: Former objective 2 regions will have to dedicate at least 20% to
support shift towards a low-carbon economy, including energy efficiency and use
of renewable energy in the housing sector
Social infrastructures: “(a) investing in health and social infrastructure which
contribute to national, regional and local development, reducing inequalities in
terms of health status, and transition from institutional to community-based
services; (b) physical and economic regeneration of deprived urban and rural
communities”;
Urban development: 5% of ERDF resources allocated to integrated actions for
sustainable urban development delegated to and directly managed by cities.

20. …. Thank you for your attention!
Alice.pittini@housingeurope.eu