Rent index a possible solution against rising rental prices

MPs were given an overview of measures which had been taken abroad to counter this problem. Among them was a so-called "rent index" which records the average rent price in a particular area.

This would allow the potential tenant to be more informed when looking for a flat and make it more difficult for landlords to demand inflated rents. In this context, it is also important to analyse to what extend shared flats and subleasing potentially inflate the price. CSV MP Marc Lies pointed out that tenants of shared flats often had to pay more rent than what could normally be charged for the property: 
"This is why I think of them as two different markets and we have to analyse both of them. This could for instance be done through an analysis of the National Register of natural persons which indicates who is part of a household and how many non-related people live there which in turn shows what sort of community it is. And then you can analyse the price of the flat"

There already exists a law in Luxembourg which was made to prevent rents from rising disproportionally. It stipulates that the rental price cannot be higher than 5% of the owner's investment. However, according to DP MP Max Hahn, it is not always clear if this regulation is respected:

"It's absurd to say we will set a ceiling at 5% and then never check if this ceiling is applied. You have to look at the average cost in order to check if this is the case. And if this ceiling is exceeded, penalties have to be paid in accordance with the law"

Hahn is convinced that random checks could be an effective solution. The MP thinks that the fear of a random check alone would have a discouraging effect.

The Green Party MP Semiray Ahmedova suggested another measure which could be implemented in the short-term: reinforcing the municipal rent assessment commissions:

"For instance, if a tenant thinks that rent is too high because of a hunch or after comparing adverts he could go to the town house and ask for the opinion of the rent assessment commission"

Ahmedova added that the Ministry of Home Affairs alongside the Ministry of Housing would offer their support to municipalities interested in reinforcing these commissions. She also stated that the government was currently working on a reform of the 5% rule.