Pedro Sánchez calls from Brussels for EU action on housing affordability.
Credit : OSCAR GONZALEZ FUENTES, Shutterstock
From Brussels, Spain’s Prime Minister Pedro Sánchez has urged the European Union to introduce new laws restricting the purchase of homes by people who don’t plan to live in them.
The goal, he says, is simple: to bring housing back to those who actually need a place to live, not another investment asset.
It’s the first time that the issue of housing affordability has been formally included on the agenda of a European Council meeting, and Sánchez didn’t waste the opportunity to push for decisive action. Speaking to the press after the summit, he called on the EU to “take legal measures” to limit speculative property buying, describing the current market as one that “no longer works.”
A broken system that’s pricing people out
Sánchez told reporters that the housing system across Europe is ‘speculating with a basic right’, making it increasingly impossible for young people and families to build stable lives. He pointed to major European cities where the property boom, fuelled by foreign investors and short-term rentals, has pushed locals out of the market entirely.
His comments come at a time when housing affordability has become a shared European problem, not just a Spanish one. “The struggle to find a home isn’t unique to Spain,” Sánchez said. “It’s something Italians, French and Germans are all facing too.”
Figures from Eurostat, cited during the Council discussions, paint a worrying picture. In the last decade, housing prices have surged by 58 per cent across the EU. In Spain, the rise has been even steeper – 72 per cent since 2014. Some countries have seen explosive growth: Hungary (237 per cent), Portugal (147 per cent), and Lithuania (147 per cent). Meanwhile, only a handful – such as Finland, Italy and France — have seen more moderate increases.
In cities like Lisbon, Madrid and Barcelona, the situation is reaching breaking point. Residents in these cities now spend up to 74 per cent of their income on housing – a figure that rises to a staggering 116% in Lisbon, according to European Council data.
Sánchez’s three-part plan to cool the housing market
The Spanish leader’s proposal focuses on three key measures aimed at bringing balance back to the housing sector.
First, Sánchez wants new legal tools that would allow EU countries to limit property purchases by individuals or companies that don’t intend to live in those homes.
Second, he has proposed “European levers” to act in stressed areas, referring to cities and coastal regions where property speculation and tourism have made housing unaffordable for locals.
And third, he’s asking Brussels to create “specific European funding” dedicated to building affordable housing — a move he says would help countries like Spain expand their stock of lower-cost homes.
The European Council, for its part, agreed on the need for a coordinated EU response. Leaders asked the European Commission to draw up an “ambitious and comprehensive plan” that could complement national policies while respecting each country’s legal powers.
A shared crisis that demands a shared solution
For Sánchez, this isn’t just an economic issue – it’s a social emergency. He reminded leaders that access to affordable housing was one of the conditions backed by the Social Democrats when they supported Ursula von der Leyen’s re-election as President of the European Commission.
His call was echoed by Greek Prime Minister Kyriakos Mitsotakis, who said housing should become a top European priority with a dedicated budget. Meanwhile, European Council President António Costa urged for more flexibility in the use of EU funds to address what he called a “pressing continental challenge.”
Back home, Sánchez’s proposal has reignited debate around foreign ownership and investment-driven housing in Spain’s most desirable areas — particularly the Mediterranean coast, the Balearic Islands and large urban centres like Madrid and Barcelona. Critics argue that the influx of foreign buyers and investors has helped drive up prices and push out local residents.
Still, Sánchez insists that Europe must treat housing as a right, not a commodity. “We can’t continue to allow speculation to decide who gets to have a home,” he said from Brussels. “It’s time for Europe to act.”