Government points out that housing policy falls within national competence
The Government has submitted a Europe communication to Parliament concerning the European Affordable Housing Plan published by the European Commission on 16 December 2025. The Europe communication describes the main content of the plan and presents Finland’s opinion regarding it. Finland recognises the importance of a well-functioning housing market but points out that challenges related to housing vary a great deal between Member States. This is why actions by Member States are in the key position in responding to the challenges.
In line with the Government Programme, Finland’s opinion stresses the important role of non-subsidised housing construction and a well-functioning housing market in responding to the challenges related to housing.
In Finland’s view it is problematic that debts of operators in social housing production are included in the general government debt even in situations where the liabilities are indirect and the apartments serve as primary collateral. It is considered important that the funding and liabilities related to publicly supported housing production are treated in the debt and deficit statistics in a consistent and transparent way.
Finland considers it important to target subsidised housing more effectively at people on low incomes and with limited means and at specific groups that find it difficult to rent a home through the private rental market. To curb the rise in housing prices, Finland stresses the important role of adequate housing construction instead of different kinds of subsidies. Free formation of prices in the housing market and of rents in the rental housing market must be the norm (with the exception of the state-subsidised housing stock).
“Exchange of ideas and good practices at the EU level is always welcome. Finland points out, however, that housing policy falls within the national competence and national measures are needed to respond to challenges in the housing market. In Finland the focus is on non-subsidised and market-driven housing construction. Public support for housing should be targeted more effectively to those who need it the most,” Minister of Climate and the Environment Sari Multala says.
The aim of the European Affordable Housing Plan published by the European Commission in December 2025 is to increase the availability of reasonably-priced dwellings. The need for this arises from the increase in housing prices and problems related to access to housing in many European countries. The Commission stresses the importance of cooperation in responding to housing challenges observed Union-wide.
European Commission’s housing package and its follow-up measures
The housing package published by the European Commission on 16 December 2025 consists of the following four elements:
- The European Affordable Housing Plan,
- the new Decision on Services of General Economic Interest (SGEI Decision)
- the Commission Communication and proposal for a Council Recommendation on the New European Bauhaus
- the European Strategy for Housing Construction.
This Europe communication concerns the first one, i.e. the European Affordable Housing Plan. The European Commission will continue to implement the plan by promoting the legislative projects and measures included in it.
The process to prepare the plan in 2025 included a broad dialogue with the Member States. During the year housing issues were discussed at the European Council, and the discussion will continue at the councils in spring and summer 2026. The EU will also organise the first-ever Housing Summit in 2026.
The Government issues Europe communications to submit matters relating to EU affairs to Parliament for its consideration. They are used particularly for EU matters that are significant for reasons of principle or in terms of their political or economic impacts.
Inquiries
Jarmo Lindén
Ministerial Adviser
tel. +358 29 525 0585
[email protected]
Emma-Stina Vehmanen
Special Adviser to the Minister of Climate and the Environment
tel. +358 295 250 078
[email protected]