The housing chapter, spanning eleven pages, is one of the largest in the coalition agreement.
Key among the government’s strategies is the implementation of short-term tax adjustments to counteract the crisis in the construction industry. The plan outlines a vision to significantly boost construction activities and expand the inventory of affordable housing in the medium term.
Minister Claude Meisch from the Democratic Party (DP) expressed the urgency of revitalising the housing market through a series of fiscal measures. The goal is to expedite procedures and, in the long run, increase the state property portfolio available for rental purposes. While Meisch refrained from providing detailed figures at this early stage, he emphasised the collaborative efforts planned over the next five years with various ministries, including finance, environment, and home affairs.
However, opposition figures, notably François Bausch from the Green Party (déi Gréng), expressed scepticism regarding the government’s approach. Bausch questioned the logic behind Meisch simultaneously handling education and housing, advocating for a consolidation of competences to ensure more effective on-the-ground outcomes. He stressed the importance of learning from past experiences and wished the government had streamlined responsibilities for better results.
Despite the government’s ambitious housing agenda, Bausch raised doubts about Meisch’s capacity to effect substantial change.
Former Minister of Home Affairs, Taina Bofferding, expressed a nuanced view. While welcoming the continuation of the property tax law project, Bofferding, now the new parliamentary group president of the Luxembourg Socialist Workers’ Party (LSAP), voiced concerns about the perceived focus on property developers and investors.
Bofferding highlighted potential challenges related to tenant rights, especially in the context of proposed notarial deeds concerning property transactions. In her view, there appears to be a gap in safeguarding the rights of tenants within the framework of the housing agenda.
In response, CSV MP Alex Donnersbach countered these claims, asserting that housing policy is crafted “in the best interests of the country.” Emphasising the priority of affordable housing in the coalition programme, Donnersbach rejected the notion of resorting to “old recipes” and highlighted the implementation of measures tailored to the current housing situation.
The CSV contends that their approach involves adapting measures to the existing circumstances rather than relying on outdated strategies. To address the immediate crisis in the construction industry, the government proposes short-term tax measures, with the Ministry of Finance taking the lead in implementing these initiatives.
The proposed tax measures may face a delay in implementation, possibly taking effect at the beginning of the next year but applied retroactively to 1 January 2024.
Full report by RTL Télé (in Luxembourgish)
