Housing is 'a task for the whole of Luxembourg society'

Minister Meisch highlighted the multifaceted nature of housing challenges, involving not only the Ministry of Housing but also the Ministry of Home Affairs, municipalities, the Ministry of the Environment, the Ministry of Finance, and the private sector. According to Meisch, effective collaboration among these entities is essential.

While property sale prices are on the decline, rents are experiencing a surge. Minister Meisch attributed this problem to a lack of supply, emphasising the need for patience in resolving the housing crisis: "It is clear that the housing problem cannot be solved overnight." He cited an ongoing project that after years of planning has only recently received approval with the completion of the flats expected in four to five years. The government, municipalities, and the construction sector will convene in February in an effort to streamline procedures.

Addressing concerns about resident opposition to new construction projects, Meisch expressed optimism, noting that a significant majority of Luxembourg's population recognises the necessity of building more homes "so that their children will still have a roof over their heads."

The minister stressed the urgency of increasing housing construction both in quantity and speed while ensuring affordability. He affirmed the government's commitment to maintaining the strengthened role of the state in this regard. Although specific figures for public investment were not disclosed, Meisch stated that the state would persist in acquiring ongoing private projects. However, he acknowledged that the state's efforts alone would not suffice, emphasising the importance of "people with money" in addressing housing challenges effectively.

Meisch suggested reviving private investment and demand, particularly in light of rising interest rates. He proposed measures such as tax benefits, even those previously cut back by the Democratic Party (DP) in the last government. He noted that these measures would have a limited timeframe.

Discussing the Rent Bill reform, including the possibility of rent control, Meisch indicated that these options remain on the table. However, he stressed the need for a balanced approach that ensures an adequate supply of affordable housing while at the same time ensuring that "those who create housing space make a profit."

Meisch also provided insights into how he manages responsibilities across the housing, spatial planning, and education ministries. He expressed that the workload is currently "levelling out," particularly with a focus on continuity in the Ministry of Education. This arrangement allows him time to engage with housing-related matters. The minister disclosed that he is actively immersing himself in the portfolio, reading extensively, engaging in conversations, and discovering new perspectives.

Acknowledging the competent team in the Ministry of Housing, Meisch hinted at plans to restructure slightly but refrained from providing details during the interview. He indicated that any announcements regarding restructuring would first be made within the ministry after the interview.