Gilles Hempel, Director of the Foundation for Access to Housing, emphasised the pressing issue of social housing shortage during an interview with RTL Radio on Tuesday.

The foundation manages and rents social housing as a social real estate agency, while also undertaking social housing construction projects as Abitatio, a social developer.

Hempel highlighted the challenges faced by a significant portion of the population in accessing affordable housing, noting that even individuals from the middle class are increasingly unable to afford accommodations on the open market. "A certain section of the population no longer stands a chance on the normal housing market," he stated.

The Foundation currently maintains a waiting list of approximately 1,200 to 1,300 households, reflecting the high demand for affordable housing options. Hempel stressed the advantages for property owners in renting through the Social Real Estate Agency (AIS), citing guaranteed rent and significant tax benefits.

With optimism towards the new government's commitment to address housing issues outlined in the coalition agreement, Hempel expressed confidence in potential reforms. He emphasised the urgent need for Luxembourg to catch up with its social housing provision compared to other countries, citing examples such as Vienna, where subsidised housing benefits nearly half the population.

Hempel urged Luxembourg to aim for a target of 20% social housing to address the growing housing inequality and ensure accessibility for all segments of society.

Challenges and progress in social housing development

For the past five years, the Foundation has been engaged in a social housing project in the "Op der Schanz" neighbourhood in Altrier. Hempel recounted encountering significant resistance from a third of the local population in this small village situated between Junglinster and Echternach. Despite legal hurdles, construction is slated to start, albeit on a reduced scale with only four homes instead of the initially planned twelve.

Anticipated to start in February, Hempel is hopeful that the project will be completed within two years. Reflecting on past experiences, he noted that the level of opposition witnessed in "Op der Schanz" was unprecedented. Nevertheless, the Foundation has successfully completed six or seven projects elsewhere, encompassing over fifty homes. Additionally, plans for "50 new homes" are underway in various parts of the country, underscoring the ongoing demand for social housing.