More and more households are facing difficulties in finding accommodation, with a saturated real estate market and insufficient offers to meet all demands. To address this issue, the government is financially involved in deploying an affordable housing scheme. This scheme for affordable housing was established under the eponymous law, passed by the Chamber of Deputies in July 2023. What do these affordable housing units consist of? Who can benefit from them and how can one move in quickly? Our answers.
Objectives of the affordable housing project in brief
In order to facilitate housing search for all Luxembourg residents, the government aims to deploy an affordable offer accessible to 18% of the population – that is, all individuals currently living below the poverty line.
Specifically, “affordable rent” refers to a rent that adapts to the income of each family, so that tenants have sufficient disposable income once this monthly expense is paid.
As part of this affordable housing project, many public constructions have been financed by the government, which is redoubling its efforts to rapidly and significantly increase the number of public housing units accessible to the most modest households.
In parallel, a National Registry of Affordable Housing (RENLA) has been deployed. This digital platform takes the form of a waiting list for all tenant applicants. Thanks to this registry, social landlords can easily manage their application files. On their part, rental applicants benefit from a clear and transparent process to submit and track their requests.
Looking for rental accommodation? Browse through our listings:
This digitization of housing allocation processes allows for a fairer, but also very effective allocation. Equipped with a predictive purpose, the platform is designed to anticipate future needs: it facilitates decision-making regarding the construction of new housing.
How to benefit from the affordable housing scheme in Luxembourg?
In order to obtain affordable housing, several conditions must be met:
- Being of legal age at the time of application;
- No member of the household must own any property, neither in Luxembourg nor abroad;
- Incomes must not exceed the set ceilings;
- All members of the household must have a residence permit of three months or more at the time of application.
When household incomes increase during the lease, the rent also increases, as it is indexed to the resources of the residents. Indeed, the rent is calculated taking into account all income received:
- Net income (excluding contributions and taxes);
- Alimony;
- Accident annuities;
- Family allowances;
- Income received for overtime.
Only the cost of living allowance and the orphan’s pension are not included in the calculation of the rent for affordable housing in Luxembourg.
The rent for affordable housing is indexed to household incomes. If they increase, it is revised upwards.
To benefit from affordable housing, the application must be processed by the Housing Service. Rental applicants fill out a form in which they provide a variety of information, including the contact details of the applicant and their partner, place of work, details of current accommodation, reason for the request, or specific needs.
Every year, rental applicants receive a letter inviting them to update their request. It is important not to neglect this step, as otherwise, the application may be removed from the waiting list.
While waiting to obtain affordable housing, do not hesitate to contact a real estate professional to inquire about available properties: they can also help you find an offer that fits your budget.
