Latvia has cancelled the second round of its affordable housing programme, a public-private partnership initiative, due to escalating and unpredictable costs. Latvian Radio reported on September 2nd that most local authorities involved opted to withdraw from the scheme. The cancellation stems from concerns over financial viability, making it difficult for municipalities to proceed with the housing projects. This programme aimed to increase the availability of rental housing, addressing a growing need within the country. The decision casts doubt on the future of affordable housing initiatives reliant on similar partnership models. It highlights the challenges faced in balancing public and private sector involvement in addressing critical social needs like housing. Further developments regarding alternative housing solutions are expected.