'The right to housing must be paramount', says Henri Kox

"We need stable prices. Individuals must be better protected; aids must be increased. And we have to build a lot more affordable homes," stressed Minister for Housing Henri Kox in an interview with our colleagues from RTL Radio on Saturday afternoon. A negative price trend must be avoided, Kox explained, because "a recession would not be good for the market."

Vienna, according to Kox, is a "good example" because all homes in the Austrian capital are under public ownership. The Minister described this as "the most resilient measure". On Friday, the government unveiled several housing reforms.

The rent law will be amended, the Minister hopes that the Chamber of Deputies will vote on the new law in spring 2023. The rent cap will be lowered from 5 to 3.5% "to prevent the most outrageous rents". However, Kox noted that rents are not a problem "in 70 to 80% of cases". Many landlords are worried whether renting out properties will remain profitable for them. The Minister assured that, in the near future, he will explain to investors that there is no need to be concerned. The new law, according to Kox, is "more transparent and just". The Minister is not worried that it will have a negative effect on investments.

Regarding the tax on uninhabited residences, Kox stated that it is "extremely important" to take action against vacant houses. If a property remains uninhabited for more than six months, the owner must pay €3,000 per year. The tax will increase by €900 every year up to a maximum of €7,500. The Minister reiterated that the goal is not "to make money," but to "mobilise people" and point out that there are ways to make these homes available to those in need of housing.

Both the property tax and the mobilisation tax are "necessary reforms," Kox stated, adding that they should be viewed as "a package deal" that reflects the government's determination to act, even if it is "more of a long-term procedure."

"The right to housing must be paramount," the Minister for Housing stressed. For this reason, Kox believes it is "a duty" to expedite the process of bringing new residences to the market. Meanwhile, investments and the construction of public housing are increasing, and Kox points out that the Housing Pact will also increase the financial aids for municipalities. The issue can only be resolved alongside the municipalities, the Minister noted.

The state has already increased financial aids for individuals. The housing subsidy was not only increased but more people are now also eligible to apply for it. 25% of those who are eligible for the subsidy apply for it, Kox stated. The goal is to increase this percentage to 40 to 50%, according to the Minister. To this end, the Ministry still plans to improve the administrative procedures. The Ministry has also hired five new workers, which has decreased the time applicants have to wait for the subsidy to three months.

Ahead of the 2023 national elections, Henri Kox confirmed that he will run for another mandate. Kox has served as minister for housing for the past three years and would like to continue in that position, "perhaps with extended authority".