Cushman urges European government ‘restraint’ on housing regulation

Cushman & Wakefield has warned that governments across Europe risk worsening their countries’ housing crises by introducing regulatory initiatives such as rent control. Writing in the agency’s Unpacking Europe’s Living Revolution report, head of EMEA living research and insight Tom McCabe said: “With interest rates and construction costs still elevated, viability remains a near-term hurdle to rapidly expanding housing output. While there is no short-term silver bullet, government support aimed at alleviating developers’ cost challenges, along with more streamlined planning processes, could make a significant difference. “Governments across Europe should exercise caution and restraint when it comes to implementing aggressive regulatory measures on housing markets in response to escalating rental costs over recent years. Our analysis indicates that heavy-handed regulations are more likely to prolong the region’s housing crises than provide an effective long-term solution. We are looking for a balanced approach that incentivises new development while protecting renters’ interests.” Cushman said growing demand for private rental accommodation among what it calls “generation rent” is being underpinned by a decline in housing affordability across the continent, with affordability falling by nearly 30% in the UK over the past decade and by as much as 50% in other European countries, including Portugal and Ireland. Photo © Geoffrey Swaine/Shutterstock