This Week in Construction & Housing — Brussels (#29, 2026)
Commission proposes Affordable Housing Act; new Public Procurement Regulation tabled; legal frameworks for short-term rentals, vacant homes clarified; Recommendation on housing supply issued.
September 07, 2026 to September 13, 2026
Commission proposes Affordable Housing Act; new Public Procurement Regulation tabled; legal frameworks for short-term rentals, vacant homes clarified; Recommendation on housing supply issued.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• 🤝 EU Council
European Commission
Commission proposes new Affordable Housing Act to address housing crisis
On 8 September 2026, the European Commission proposed the Affordable Housing Act, aiming to support Member States and cities in addressing housing affordability and availability in areas under pressure. The Act provides a common European framework for assessing housing-related measures affecting the Single Market, including clear criteria for identifying 'areas under housing stress.' Public authorities are given legal certainty to act based on local evidence within EU law. The proposal includes provisions for restricting use of housing, such as short-term rentals and vacant dwellings, provided such measures are targeted, necessary, and proportionate. Accompanying the Act, the Commission issued a Recommendation on housing affordability and supply, encouraging Housing Acceleration Plans to increase housing supply through faster planning, permitting, renovation, and investment. The legislative proposal will now proceed to the European Parliament and Council.
Commission presents new Public Procurement Regulation
On 8 September 2026, the Commission adopted a proposal for a new Regulation to modernise and simplify the EU's public procurement framework. The Public Procurement Regulation consolidates three existing directives and sector-specific legislation into a single, directly-applicable Regulation, reducing complexity and administrative burden. The regulation introduces three procurement procedures, enhanced flexibility for public buyers, and a digital marketplace linking national eProcurement platforms. Best Price-Quality Ratio (BPQR) becomes the standard award method, requiring quality criteria to account for at least 30% of awards. The proposal also strengthens support for environmental, social, innovation, security, and European preference goals. The Regulation will be negotiated by the Parliament and Council before adoption.
Commission adopts Recommendation on housing affordability and supply
Alongside the Affordable Housing Act, the Commission adopted a Recommendation focusing on increasing housing supply in areas under housing stress. The Recommendation promotes Housing Acceleration Plans to unlock land and accelerate permitting, renovation, and repurposing of buildings. It encourages authorities to use available EU and national funding, and highlights measures to deliver social, affordable, and student housing more quickly. The Recommendation also calls for strengthening the capacity and productivity of the construction sector through innovation and industrialised methods.
Press remarks by Executive Vice-President Ribera and Commissioner Jørgensen on the Affordable Housing Act
On 8 September 2026, Executive Vice-President Teresa Ribera and Commissioner Dan Jørgensen delivered remarks on the adoption of the Affordable Housing Act. Ribera described the Act as a legal umbrella for mayors, providing tools and certainty to address the housing crisis. The Act sets technical criteria to define areas under housing stress and allows targeted measures addressing short-term rentals and second homes. Jørgensen highlighted survey data showing that 51% of city dwellers see affordable housing as an urgent problem and referenced significant rent increases in Berlin, Madrid, and Lisbon. Both stressed that the Act provides a legal framework for local governments to act within EU rules, without imposing mandatory measures.
Commission proposes simpler and more strategic Public Procurement rules
On 8 September 2026, the Commission proposed new, consolidated Public Procurement rules, aiming to reduce administrative burden and promote effective investment in public services and infrastructure. The Regulation integrates existing directives and sectoral acts, introduces a digital procurement marketplace, and strengthens strategic objectives such as environmental sustainability, innovation, resilience, and European preference. The new framework allows negotiations in all procedures and sets minimum quality criteria in contract awards. The proposal responds to recommendations from the Draghi and Letta reports and addresses long-standing shortcomings identified by the European Court of Auditors.
Commission delivers Q&A document on Affordable Housing Act
On 8 September 2026, the Commission published a Questions and Answers document clarifying the scope and operation of the Affordable Housing Act. The Act allows local authorities to identify areas under housing stress based on price-to-income ratios and local evidence, and to implement targeted, proportionate restrictions on housing use, such as short-term rentals and second homes. The document notes that the Act does not harmonise housing policies or grant new EU competences, and measures affecting housing must comply with Single Market rules. The accompanying Recommendation focuses on increasing supply and construction sector capacity.
Commission delivers Q&A document on EU Public Procurement Act
On 8 September 2026, the Commission published a Questions and Answers document on the EU Public Procurement Act, detailing simplifications and strategic tools for public buyers. The Act replaces three directives with a single Regulation, introduces a Europe-wide Digital Marketplace, and standardises the Best Price-Quality Ratio award method. It integrates environmental, social, and innovation criteria, facilitates SME participation, addresses concessions, and introduces mechanisms to prevent fraud and corruption. European preference is clarified, with the Commission empowered to restrict third-country access where necessary.
EU Council
Upcoming ECOFIN informal meeting
Economic and Financial Affairs Council (ECOFIN) ministers will hold an informal meeting on 18 September 2026.
Competitiveness Council to discuss industry and internal market
On 24 September 2026, the Competitiveness Council will debate the Chips Act 2.0 and revision of merger control guidelines. Ministers will be informed about proposals including the industrial accelerator act and the European competitiveness fund.
