CSV's parliamentary fraction leader Martine Hansen and MP Marc Lies presented a range of potential solutions on Friday morning. The party urge the government to create more affordable housing in Luxembourg. Marc Lies argued that this starts with a paradigm shift in terms of an extended perimeter of construction. The public sector needs to buy more buildable land, and build higher buildings with less space between them.
He added that 30% of new habitable surfaces (which were formerly qualified as "green zones") should be purchased by the government. It would then be up to the government, he explained, to build new housing units on these surfaces that are then rented out at affordable prices.
According to the CSV, young people should have the option first to rent these properties and then buy them at a later stage. The elimination of VAT and high subsidies would make the project attractive for private investors, they added.
Another key suggestion concerns the so-called "Bellegen Akt." When a purchaser of a land or a property signs a notary act, he or she needs to pay different notary fees. Registration fees are calculated on the value of the land and buildings on this land, at 6%. If you plan on living in the Grand Duchy or live in your new acquisition, the "Bellegen Akt" allows you to obtain a tax credit on these rights. The "Bellegen Akt" currently amounts to up to €20,000 - which is not high enough according to CSV. The party demands the tax credit to be increased to €50,000.
CSV are also in favour of an efficient speculation tax to make housing more affordable.
Martine Hansen also pointed out that Luxembourg would benefit from promoting skilled crafts and trades in its schools. The national federation of craftsmen lament that there is a lack of budding craftsmen in the Grand Duchy.
