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House prices and rents are rising across the EU. The Government is considering measures to support young people and the rental market

“We need high-quality education, secure and stable employment, adequate pay and a home at a fair price,” Prime Minister Giorgia Meloni said recently

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2' min read

Translated by AI
Versione italiana

2' min read

Translated by AI
Versione italiana

House prices in the European Union continue to rise, and with them, rents. According to Eurostat, in the second quarter of 2026, prices rose by 4.7 per cent compared with the same period in 2025, and rents by 3 per cent.

Compared with the annual average for 2025, prices have risen by 4.1 per cent and rents by 2.6 per cent. In 18 EU countries, prices rose faster than rents. In 2025, compared with 2024, property sales increased in most countries for which data is available.

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The economic slowdown in Italia in the third half-year

In Italia, however, the third quarter saw a slowdown. According to Idealista, house prices have fallen by 1.1 per cent, to an average of 2,031 euros per square metre. On a year-on-year basis, the figure remains positive, up 3.3 per cent compared with September 2025, whilst on a month-on-month basis, prices are stable.

According to Vincenzo de Tommaso, head of the portal’s research department, the decline reflects the delayed effect of the ECB’s monetary tightening. Interest rates that remain high make mortgages more expensive, restrict access to credit and curb some of the demand, particularly in outlying areas and the mid-range segments. Regional capitals, on the other hand, are showing resilience that is ‘better than expected’.

The Government’s moves

On the housing policy front, the government is looking ahead to the next budget. “We need high-quality education, secure and stable employment, adequate pay, and a home at a fair price,” Prime Minister Giorgia Meloni said recently, outlining the conditions needed to “start a family”. Deputy Minister for the Economy Maurizio Leo has given a preview of the measures under consideration, “financial resources permitting”.

Firstly, there are incentives for the purchase of a first home for those under 36. Next, the extension of VAT to the sale and letting of homes by property companies, and the reduction of the VAT rate from 10 per cent to 5 per cent on residential lettings, excluding luxury properties. Finally, residential properties let by construction companies will be treated in the same way as business premises. Obviously, funding for these measures will need to be secured in the Budget Bill.

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