The coalition government is still at odds over the proposed rent reforms, with the LSAP accusing housing minister Henri Kox of ambiguous communication.

A political ping pong match has developed between the three governing parties over the rent reform bill. The project has been criticised by numerous politicians over recent weeks, with the main complaints suggesting that the construction of new housing could become more unattractive, while rents for older housing could rise massively as a result of the bill.

Prime Minister Xavier Bettel was the first to make a comment on the project, describing the decisions and communication surrounding the bill as "not the most opportune" in a New Year's interview with RTL.

The premier also suggested that the text for the bill could be reworked in the near future, although Minister for Housing Henri Kox, of the Green party, declined to give an official statement on the comments.

LSAP has "big issues" with the amendments

The LSAP's co-president, Francine Closener, told RTL on Wednesday that changes to the draft law were sorely needed. The initial text was said to be "very good", but the later amendments represented "big issues" to the LSAP, Closener said.

The fact that older apartments could demand higher rents in accordance with the amendments did not bode well for tenants, leading the LSAP to request a conversation with the housing minister.
The LSAP's statements did not have a positive reception at the Ministry of Housing, who retaliated on Thursday, issuing a reminder that the amendments under criticism had been presented to both the LSAP and the DP in July 2022 for discussion, and were later passed by representatives from all three coalition parties in October's government council.

The Ministry of Housing also claimed it was contradictory to complain about high rents for older apartments, while simultaneously criticising that rent for new-build apartments was too low.

Minister Henri Kox said he would be willing to explain the amendments in detail once more on 22 February, as part of a national strategy conference.

But the matter did not end there, as the LSAP issued a fresh press release on Friday accusing Kox of having deceived them through ambiguous communication.

The statement was signed by top members of the party, including Maxime Miltgen, president of the Socialist Women's association; Ben Streff, president of the LSAP in eastern Luxembourg, and Max Leners, a member of the party's committee.

Streff confirmed that the rest of the party leadership supported the statement.

Henri Kox accused of "deceiving" LSAP ministers 

The LSAP statement claimed the government council ministers' approval was only possible because Kox had deceived them, through showcasing the drop in invested capital from 5 to 3.5%, while concealing the fact that the bill sought to redefine invested capital in the first place.

The socialist party also pointed out the political separation of powers in Luxembourg, as laws are not passed by the government council, but by the Chamber of Deputies. Therefore MPs should now propose amendments to the bill.

Despite this, the LSAP emphasised that Kox's bill did contain positive points, such as the limitation of rental guarantees, shared agency commissions, and further precision on flatsharing and living conditions in houses of multiple occupancy.

However, the party was adamant that all amendments concerning rent ceilings should be removed from the text, and proposed the creation of a national commission under the Ministry of Housing's leadership, which should concern itself with defining a fair return for renting out property.

This commission should involve a number of concerned parties and display absolute transparency for ownership relationships, with an ultimate goal of redefining a new rent ceiling on this basis.

DP and déi Gréng "irritated" with LSAP handling of the situation

The other coalition partners reacted to the LSAP statement on Friday with some irritation. DP president Lex Delles said he did not wish to comment further on the contents of the statement, as he did not feel it appropriate for discussion in the public eye. The issue of such a press release was not the DP's style, Delles added.

Meris Sehovic, co-president of the Green party, said he was "extremely surprised" at the LSAP's handling of the situation, as they had not behaved in such a manner as part of the coalition to date. Sehovic highlighted that Kox was the first housing minister to undertake a reform of the law on rent, and had prioritised tenants' rights as part of the project.

He also questioned why the LSAP Minister of the Interior, Taina Bofferding, who had worked closely alongside Kox on the reforms, had not proposed any improvements during this process, if the LSAP thought the text was so inadequate.

Sehovic suggested that internal communication within the LSAP was not functioning at its best, and stated the Greens were not preoccupied with the October elections at this stage as they preferred to focus on their work, with a particular focus on housing.

Both Delles and Sehovic agreed that all three coalition parties needed to discuss the issue in detail; however, it remains unclear when this meeting will take place. It does not seem out of the question that the political discourse will continue over the coming weeks, with no sign of abating.

Read the LSAP statement here.