The supply of affordable and energy-efficient housing and infrastructure development in the EU can be accelerated if construction service providers are able to make full use of a true single market. The restrictive and diverse regulation of construction services holds back the supply of such housing and infrastructure. Through this this initiative, the European Commission aims to lower barriers to cross-border market access for construction and installation services.

As the largest European association representing individual homeowners, co-owners, and private landlords, i.e. the end of the construction value chain, UIPI is uniquely positioned to offer a constructive and balanced perspective, as our members are the individual and institutional clients who finance, own, manage, and operate the real estate stock, particularly housing.

Key challenges Identified by UIPI

• Housing shortages across EU: UIPI warns of a systemic housing supply deficit, with authorised housing starts falling by more than 20% between 2019 and 2024. Eurostat data confirms a continued decline in building permits, exacerbating the crisis.
• Escalating costs and workforce shortages: Construction producer prices for new residential buildings surged by 52% between 2010 and 2023, with a record 12% increase in 2022. Labour costs also rose sharply, while shortages of skilled workers (such as electricians, plumbers, and carpenters) threaten the EU’s Green Deal and Renovation Wave objectives.
• Barriers to cross-border services: UIPI highlights fragmented regulations, lack of mutual recognition of qualifications, subcontracting restrictions, and duplicated compliance requirements as major obstacles for cross-border operators. Proprietary servicing practices and administrative burdens further undermine competition and efficiency. Likewise, persistent disparities in national insurance regimes and supervisory frameworks create vulnerabilities for cross-border construction projects, despite EU-level harmonisation efforts.

To tackle these challenges, UIPI calls for a legislative framework that aligns EU policies with on-the-ground realities and supports housing affordability and urges the European Commission to:

• Strengthen mutual recognition of qualifications and certificates;
• Streamline and proportionately harmonise existing EU rules;
• Reduce administrative burdens and improve digital interoperability;
• Ensure that the Construction Services Act facilitates construction activities rather than adding complexity.