The Luxembourg Ministry of Housing's initiative for the management of social rent has proven to be a success so far.

Since 1 January 2017, landlords renting a property to a social rental management agency, contracted with the Ministry of Housing, can enjoy an exemption of half of their rental income. In addition to the success of the concept of social rental management, the tax benefit has contributed to a solid development of this activity and the number of housing units made available by this measure.

The social rental management was set up in 2009 and is aimed at any non-profit foundation or association whose purpose is the promotion of housing, municipalities, unions or social offices. These organisations can sign a collaboration agreement with the Ministry of Housing and subsequently rent apartment dwellings to private owners in the private real estate market to make them available to people seeking housing.

On average, rents paid to private owners are between 30% and 40% below market rents and will be made available on the same terms by the organisations. The Ministry of Housing supports the organisations with a participation fee of €100/month and with housing.

The benefits of this housing initiative are many: in addition to guaranteeing regular rent to landlords, it enables beneficiary households in a precarious housing situation to access affordable housing, while being able to benefit from a social framework proposed by the organisation. In addition, this measure ensures that the organisation also deals with minor maintenance work in the dwelling, if deemed necessary.
The number of partners contracted with the Ministry of Housing is currently 16 organisations- more than double the number in 2016. The number of subsidised housing units was 360 units at the end of 2016 and is currently 512 units, representing a 42% increase in 14 months.