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Investors need more reassurances before they fully commit to affordable housing
JUNE 26, 2025

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Investors need more reassurances before they fully commit to affordable housing

by Marek Handzel

The prospect of having to deal with negative press reports and unreliable tenants puts a lot of investors off the affordable housing subsector. Tenants raising unjustified or false complaints at landlords for any number of supposed infringements of contracts is one of the top concerns some investors have, but these worries are based on rare examples, rather than common occurrences. Damage to property and unsocial behaviour are two other fears. Again, however, people tend to pick one outlier case and then almost use it to justify their bias against the subsector. Tackling these fears, as well as a perception that the subsector offers very low returns is crucial if Europe is to effectively manage its housing crisis.

On top of these concerns, the threat of regulation, particularly in the form of rent caps, is one of the strongest arguments against affordable and social housing investment, as it does make it unviable in some cases and regions. While rent caps can provide immediat

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