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Luxembourg needs a Marshall Plan to combat rising housing rents, says the non-profit association Mieterschutz.
"It was already a catastrophe. Now it's even worse than a catastrophe. I don't know how to describe this whole thing," says Mieterschutz president Jean-Michel Campanelle in an interview with RTL.
The non-profit has been receiving an increase in questions from panicking callers due to the high increase in rents, or because they are simply unable to find housing. All at a time when, for the first time in years, property prices have decreased.
"Now we also have social welfare offices calling us about the fact that a lot of landlords are using "personal reasons" to kick out renters," says Campanelle. "The idea is that they can kick out all current tenants, increase the monthly rents by a few percent, and attract new tenants." If the same tenant remains, the legal rent increase limit is much lower.
In the first trimester of 2023, rental properties are listed 8.7% higher compared to the end of 2022. At that time, the increase in rents had already surpassed the inflation rate.
According to the president of Mieterschutz, the government's current proposals, which have not yet been voted on, have come far too late. The coalition must act immediately, relieve tenants and "build, build, build", says Campanelle.
Meanwhile, more and more people are finding housing across the border, which further complicates finding housing in the Greater Region and drives up prices.
"The municipalities have to participate, everyone has to participate. We have to sit around the table again and see what we can do in the next six months, even a year."
"We need a real Marshall Plan. I don't think we've had such a crisis in the last 50 years."
Concretely, the non-profit association Mieterschutz supports the idea of the Ministry of Housing to buy up projects that private promoters cannot currently complete due to the crisis.
However, reactivating the tax advantage for investors would be the wrong way forward, says the asbl.