branded content: ASVAL
The European Affordable Housing Plan, spearheaded by the European Commission, aims to deliver solutions rooted in the principles of social inclusion, environmental sustainability, and economic resilience. While this initiative is framed as a response to broad systemic challenges, its success hinges on the engagement of actors with the capacity to deliver at scale. Among them, the Spanish Rental Housing Association (ASVAL) stands out as a key voice shaping the future of Europe’s rental housing market.
Founded in 2020, ASVAL represents more than 6,000 members, including institutional landlords, build-to-rent developers, real estate funds, and professional property managers. This diverse coalition manages a significant portion of Spain’s rental stock, positioning ASVAL not merely as a national stakeholder, but as a European-level contributor. In its official response to the European Commission’s call for evidence, ASVAL lays out a pragmatic vision that goes beyond ideological rhetoric — one rooted in market functionality, legal stability, and public-private partnership.
A Voice for Investment-Driven Solutions
ASVAL’s central message is clear: addressing Europe’s housing crisis requires unlocking the potential of institutional capital. Public resources alone are insufficient to meet current and future demand. ASVAL argues for a framework where private actors are not only welcomed but incentivized — through smart regulation, fiscal measures, and recognition of their role in delivering social value.
These proposals have been formally submitted in the context of the European Commission’s initiative to develop a European Affordable Housing Plan, coordinated by DG ENER, where ASVAL participates as a stakeholder. The final goal is to shape EU-level recommendations that can facilitate investment and accelerate the delivery of affordable, energy-efficient housing across Member States.
ASVAL has submitted a series of policy recommendations:
• Establishing a harmonized, investment-friendly tax regime, such as super-reduced VAT and corporate tax relief for eligible operators.
• Modernizing EU State aid rules to allow for targeted support of private initiatives that meet social and environmental objectives, particularly in affordable and energy-efficient rental housing.
• Providing regulatory clarity and institutional support, including the standardization of affordability definitions and performance-based indicators that transcend national borders.
There is vast empirical evidence that housing markets function best under legal certainty and regulatory stability. ASVAL warns against politically motivated interventions — such as rent controls — that risk distorting markets, reducing supply, and discouraging long-term investment.
Advocating for Subsidiarity and Legal Coherence
ASVAL defends the principle of subsidiarity — respecting the authority of Member States in housing and tenancy matters — while simultaneously advocating for EU-level alignment on key investment enablers. For instance, cross-border investors require clarity on how national planning laws and EU funding instruments intersect.
ASVAL calls for EU guidance that bridges this gap, enabling smoother deployment of capital in transnational affordable housing projects.
Equally important is the reinforcement of property rights and rule of law. ASVAL emphasizes that legal predictability is a precondition for investment. Spain’s experience — where prolonged eviction processes have contributed to uncertainty — illustrates the broader need for policy environments that safeguard ownership and uphold contractual stability.
Unlocking Public-Private Potential
One of ASVAL’s most impactful proposals is its blueprint for enhanced public-private partnerships (PPPs). These models, if properly structured, can rapidly expand the affordable rental stock while preserving public oversight. ASVAL recommends:
• Risk-sharing mechanisms and performance metrics that build investor confidence.
• Excluding well-designed PPPs from national debt calculations, provided they meet affordability and sustainability criteria.
• Incentivizing financial institutions through updated prudential frameworks, such as Basel II adjustments, to facilitate financing of rental and PPP projects.
Energy Efficiency and Affordability: A Dual Imperative
ASVAL aligns closely with the EU’s climate ambitions. However, it cautions that without targeted mechanisms, landlords may lack the incentive to undertake costly energy renovations, especially in affordable units. The association proposes:
• Dedicated funding and tax benefits for energy-efficient upgrades in rental housing.
• Inclusion of residential renovations in the EU Emissions Trading System (EU ETS), allowing landlords to monetize carbon savings through tradable rights.
• Exemption of these revenues from personal income tax, to ensure the broadest possible participation, including from small landlords.
These measures are designed to overcome the “split incentive” dilemma, where the costs of renovation fall on landlords, but the energy savings accrue to tenants.
Elevating Institutional Voices in the Policy Arena
ASVAL’s role in shaping the European Affordable Housing Plan extends beyond technical recommendations. By representing a broad spectrum of institutional landlords, ASVAL ensures that the voice of professional housing providers — often underrepresented in public discourse — is heard at the EU level. This advocacy is particularly important at a time when housing policy is increasingly shaped by political imperatives that may not align with long-term market viability.
A particularly pressing issue is the growing influence of anti-institutional narratives in housing policy. Some advocate for limiting or excluding financial actors from the housing sector, in the name of curbing “financialisation.” While these concerns are often rooted in social justice, they frequently overlook the positive externalities that institutional investors bring: capital stability, quality standards, and operational excellence. ASVAL protects and represents all types of landlords — institutional and individual — because we believe in a stronger, more collaborative rental ecosystem where best practices and innovation flow from larger operators to the wider market. Without an informed, pragmatic counterweight, such narratives risk steering policy in directions that damage affordability, hinder investment, and ultimately reduce housing supply.
This is paramount in fragmented markets like Spain, where much of the rental housing is held by individual owners. Institutional operators are essential to aggregating and professionalizing supply.
A Call to Action
The European Affordable Housing Plan is a historic opportunity — but its success depends on the engagement of credible, solution-oriented stakeholders. ASVAL exemplifies this role.
Its proposals are not abstract concepts, but implementable pathways that reflect the lived realities of housing provision.
As Europe turns toward implementation, ASVAL is committed to continuing its engagement with the European Commission, the Parliament, and fellow stakeholders. For institutional actors across Spain and beyond, now is the time to join forces, contribute to the debate, and help shape a housing system that is affordable, resilient, and fair — for all.