The report published by the Chamber of Employees (CSL) notably points out that wages rose by 2.8% between 1995 and 2016 in contrast to a veritable explosion in housing market prices. CSL director Sylvain Hoffmann estimated this boom lay at 6% each year. Those hit hardest by the price development are those with less financial security.
The CSL cited figures such as two out of five people admitting that they only manage to cope with housing costs with great difficulty. Of the 18% of society at risk of poverty, 64% have said that housing is an especially heavy burden. Given the urgent need to resolve the issue, the Chamber used its 'Note on Housing' to provide a number of recommendations. The CSL notably recommends reforming the property tax, which currently only contributes €38 million, or in other words, 0.1% of the GDP.
If the property tax were to be adapted, the state could increase its revenue to €824 million, but for that to happen the Specialised Investment Fund (FIS) would require reform as well.
As for rents, the chamber believes that deposits should only come up to one month's rent rather than three, as is current practice. The report also recommended reforming rental subsidies to adapt them to rental increases. The chamber criticised the lack of true control on the rental market.
The Chamber of Employees outlined that Luxembourg has a land potential value of €20 billion, covering 2,900 hectares. 2,100 hectares belong to 15,000 people, meaning 1% of property owners (159 people) account of 25 of the land potential. This means 159 people have land of an average of 403 hectares. The chamber argued that adequate and targeted measures designed to bring land to the market would only affect a very small group of people. However, there is a lack of true interest among this group in mobilising the land.
