The first councillor from the Ministry for Housing joined our colleagues on RTL Radio on Monday morning to discuss ways of expanding the offer of affordable housing in Luxembourg
Dupont argued that the only way of expanding the Social Rental Management (GLS) is to gain new owners. There are around 1,100 GLS accommodations at present. Dupont said that although new ones are added each year, demand from potential tenants is simultaneously increasing.
The councillor described the GLS as one of many elements relating to the issue of affordable housing and designed to prevent accommodations from staying vacant.
Owners can offer their properties to an association and then no longer have to take care of anything. Aside from the guarantee that rent is covered, owners get further tax advantages. Tenants benefit from affordable rents and continued social care from the association in charge.
Long waiting lists
The Ministry for Housing provides associations with a legal frame for the GLS. According to Dupont, there is however no time limit for rents, associations have to fix those in the rental agreement. The idea is to help people until they have been able to improve their financial situation and can relocate.
Dupont argued that greater efforts are needed to create more affordable housing in general as waiting lists at public developers SNHBM and the Housing Fund are extremely long. Nearly 5,000 people are registered at the Housing Fund, over which Dupont presides.
Tenants living in a GLS accommodation have trouble relocating even when they are financially stable due to the situation on the housing market. Dupont concluded by saying that the major housing projects currently in development should therefore be used to expand the offer of rented accommodations.