Private landlords can offer their vacant accommodation to low-income families or refugees, which are then managed by municipalities or associations. Housing minister Henri Kox gave an overview of the 2021 programme at a press conference on Tuesday, where the agreement between the government and the 37 partners for 2022 was also signed.
The “social tenancy” programme has existed since 2009, aiming to reduce housing inequality. Henri Kox:
“We have a poverty risk of around 15% of society. Currently 3% of all rental accommodation is managed by public authorities, but I think we should aim [...] for a 15% threshold of affordable housing, which would guarantee an acceptable accommodation for every family, every couple, every single person.”
The number of accommodations in the programme is increasing every year, and there is certainly a need. The programme is a win-win situation for both sides. Tenants are offered rents around 10-12 Euro per square meter and receive additional support from the professional team managing the accommodation.
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Landlords, for their part, have a guaranteed monthly rent coming in. While the rents are around 30-40% under market rates, landlords receive tax benefits of up to 50% of net revenues. If they need their property back, the tenants are relocated by the management partner.
And with government plans to tax vacant accommodations in future, interest in the programme is likely to increase.
Landlords who are interested in adding their property to the programme can get in touch with one of the partners listed on logement.public.lu.
