© Arnaud Serexhe / RTL
During a press briefing on Thursday, the Luxembourg Socialist Workers' Party (LSAP) demanded that affordable housing should increase from 2% currently to 20% by 2035.
During the press conference, the opposition party presented their 10-point action plan for housing in the Grand Duchy, accusing the government's plan to build "more and faster" of being insufficient. The LSAP, which served in government for almost 20 years prior to 2023's elections, said their plan combines old concepts with new discussions.
The role of municipal councils in Luxembourg's housing market must be looked at, as councils are often hesitant to commit to more housing, in part due to concerns over pressure on infrastructure and childcare. MP Paulette Lenert (LSAP) said she felt municipalities should be told how much they should be building: "There could be more research into construction spaces and how densely councils could build. This conversation has to start somewhere."
Lenert said she would like to see meetings between the Chamber of Deputies and municipalities even over the summer to discuss the urgency of the housing issue, particularly when it comes to the clashing of procedures.
In order to speed things up, the LSAP proposes the concept of serial construction, or type "E" buildings, where E refers to experimental, simple construction. These could be introduced under new authorisations.
Improved protection for buyers and tenants
Max Leners, the LSAP's housing spokesperson, proposed improved protection mechanisms for buyers, such as a guarantee of completion, instead of a guarantee of reimbursement.
Tenants in rented properties should also qualify for fiscal support, say the LSAP, and should be able to deduct from their rent much like buyers and investors.
The party also calls for not one, but two rent caps: one for properties constructed before the housing boom of 2010, and one for properties built after that date. Why? Leners said the rent cap was superfluous for new-build properties, because it allows rents which are not affordable for many. It was also illogical to have a rent cap of €600 for an 80-square-metre apartment purchased in the 70s, but if a new buyer were to purchase that same property now, they would be able to ask for a rent of €2,000, due to the laws which stipulate rent can be linked to the capital invested in the property.
The party's action plan includes a state loan, available to private individuals with tax incentives, in order to encourage investment. They also propose the promotion of housing cooperatives and say that public institutions should have pre-emptive buying rights.
20 years in government: projects and compromises
The LSAP is prioritising their fight against speculation economics. Party leader Taina Bofferding countered accusations that her party had done nothing in two decades in government by pointing to projects she tabled as Minister of the Interior in recent years, such as mobilisation taxes or the construction land agreement. Beyond that, she said they had to reach compromises with their coalition partners.
