Delightful housing European relative (5)
I believe the answer is:
niece
'relative' is the definition.
(type of relative)
'delightful housing european' is the wordplay.
'delightful' becomes 'nice' (I've seen this in another clue).
'housing' is an insertion indicator.
'european' becomes 'E' (abbreviation e.g. EU).
'nice' going around 'e' is 'NIECE'.
(Other definitions for niece that I've seen before include "Daughter of a sibling" , "girl further down the line" , "Family relation" , "Family girl" , "Criminal" .)