In Luxembourg – A turnkey solution for affordable housing
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LUXEMBOURG – Intended to deal with the housing shortage, social rental management is gaining momentum.
Social exclusion through housing is a reality in Luxembourg. To combat this phenomenon, which has been on the rise in recent years, the Ministry of Housing offers a “turnkey” solution, social rental management. Thanks to this system, created in 2009, he hopes to mobilize unoccupied housing, thus allowing low-income households to have a home at an affordable price.
Various actors such as municipalities, non-profit organizations, promoters can sign an agreement with the ministry before renting unoccupied housing belonging to private owners. The rents paid by low-income households are less than 40% of the market. In return, private owners benefit from a tax exemption of 50% on their net rental income.
“Win-win for tenants, landlords and municipalities”
In 2018, the number of housing units mobilized thanks to social rental management was “only” 714. A year later, this figure rose to 845 (+19%) to peak at 1,073 (+10%) in 2021. “With more than ten years of experience, our tool has proven its effectiveness”, underlines Henri Kox, Minister of Housing. “It is a win-win instrument for tenants, landlords and municipalities”. 37 approved partners (Caritas, the Red Cross, Inter-Actions, Women in distress, etc.) are now active in social rental management.
Thanks to them, the rent is guaranteed, taxes exempt, the occupant supervised, the property available and well maintained.