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While tenants grapple with rising rents and eviction fears, landlords argue that their interests are overlooked in Luxembourg's ongoing housing crisis.
Losing one's home has become the primary concern for tenants in Luxembourg, a fear closely tied to the dramatic rise in rents across the country.
Jean-Michel Campanella, President of the Tenants' Protection Association, confirmed this trend, citing findings from a recent study conducted in collaboration with the University of Luxembourg. "The study will soon be presented to the public," he stated, as the rental market grows increasingly strained.
Rents are climbing, and termination notices are becoming more frequent. "We've been contacted by numerous tenants who have received termination letters from their landlords," Campanella explained. Under Luxembourg law, landlords can terminate leases under three specific circumstances: serious misconduct by the tenant, personal need, or compelling reasons such as property renovations that make occupancy untenable. Landlords must provide between three and six months' notice, depending on the reason for termination. However, in cases of serious tenant misconduct, landlords can seek immediate termination through a Justice of the Peace.
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The Ministry of Housing notes that traditional lease terminations can be communicated "through various means, such as email or verbally." However, it recommends using a registered letter to ensure proof of delivery in case of disputes. In more severe cases, such as evictions, court involvement is inevitable. Tenants facing eviction can apply to a Justice of the Peace for a stay by submitting a request to the court registry.
Campanella advises affected tenants to seek assistance from the Tenants' Protection Association or consult a lawyer to navigate the process and avoid unexpected outcomes.
When questioned on the issue, Georges Krieger, President of the Homeowners' Union, stated that the number of evictions has not risen in recent years. "I don't see more cases now than I did ten or 15 years ago," he told our colleagues from RTL Infos in an interview. While acknowledging that rising rents are a growing concern, Krieger emphasised that not all tenants are equally affected. He pointed to long-term renters as an example, noting that while they may have experienced periodic rent increases, their situations are often more stable.
Krieger highlighted another pressing issue: the sharp rise in utility costs. A monthly advance on utilities for a "normal" flat is now around €400, compared to €250 just five or six years ago, he explained. This increase, he argued, impacts all tenants regardless of the energy efficiency of their property and poses a greater financial burden than rising rents. "The situation is undoubtedly more challenging for those currently looking for a place to rent," he conceded.
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Campanella emphasised the importance of understanding the legal framework surrounding lease terminations. He urged tenants to exercise caution and vigilance. "The first step is to determine whether the termination is legal, as it often isn't," Campanella said. "Some landlords send termination letters […] or even emails claiming personal need, telling tenants, 'I'm reclaiming my property in two weeks.' Obviously this is completely illegal," he stressed.
Campanella advised tenants to carefully assess their situation and explore available legal remedies.
Meanwhile, Georges Krieger believes that landlords and their interests "are not sufficiently protected." He pointed to the lengthy procedures involved in terminating leases, which he claims can take up to "a year and a half." According to Krieger, "A landlord who has gone through this process once will be reluctant to reinvest in rental property." Krieger believes that the current focus on the social aspects of housing overshadows the challenges faced by property owners. "If we want to improve the housing situation at a national level, we need to pay more attention to the problems of landlords," he stated bluntly.
Despite their differing perspectives, both Krieger and Campanella share a common goal: expanding Luxembourg's rental housing stock. Rising rents are partly driven by a shift in the market, as many potential buyers have opted to rent instead of purchasing property. Supply, which was already tight two years ago, has continued to shrink, exacerbated by declining confidence in off-plan (VEFA) housing.
One point of consensus among stakeholders is the urgent need for new housing construction in Luxembourg. Building more homes would not only alleviate pressure on the rental market but also support jobs in the construction industry.
