Following a session on the Middle East conflict, MPs on Tuesday will discuss a vital housing revitalisation package, aimed at boosting Luxembourg's construction industry, increasing housing supply and providing rental support.

On Tuesday afternoon, MPs in the Chamber of Deputies will debate the package of measures designed to revitalise Luxembourg's housing market in the short term.

The parliamentary session will begin at 2.30pm with a news hour on the situation in the Middle East, as requested by the Luxembourg Socialist Workers' Party (LSAP). Violent clashes on Monday pitted Israeli soldiers against Hamas fighters in the Gaza Strip, which has been devastated by more than seven months of war. Palestinian civilians continue to flee the violence, with Rafah now threatened by a major offensive.

Lawmakers will then debate the "housing package", a series of measures designed to rapidly revitalise the flagging housing market. The measures have a triple aim: to strengthen the construction and craft industries – in order to safeguard jobs – but also to increase the supply of housing and support households wishing to buy or rent a home.

The package includes the introduction of a €20,000 "rental tax credit". Purchasers-investors of homes for sale in a future state of completion (VEFA) intended for rental should benefit from this credit. Those who buy a property that has already been built for rental purposes will not be able to take advantage of this credit at the time of purchase.

The main aim of this measure is to support the construction sector, which has been officially deemed in crisis for several months now, but which, according to Finance Minister Gilles Roth, is beginning to regain momentum.

Another measure in the package is the increase in the duration of the tax credit on notarial instruments, known in Luxembourgish as the 'Bëllegen Akt'. This tax credit could thus rise from €30,000 to €40,000 in 2024.

The proposed measures also include an increase in the rent subsidy for households with children and the rent subsidy for young employees. The rent subsidy is set to rise to €80 per child.

Three other bills concerning affordable housing are on the agenda for this Tuesday public session.