Luxembourg Increases Rent Subsidy for Tenants in Financial Difficulty

On Friday 15 July 2022, Luxembourg's Ministry of Housing has announced increases in the rent subsidy for tenant households in difficulty.

Given the evolution of rental prices on the private market, as well as the rise in energy prices due to the war in Ukraine, the increase in the rent subsidy provided for in the context of the reforms of individual housing aid has been anticipated. This decision, taken during meetings of the Tripartite Coordination Committee, targets the households most exposed to current inflation.

With the increase in the amounts allocated, the criteria for access to this financial assistance for tenants are also broadened. The rent subsidy is calculated in relation to household income and composition. Single-parent families are particularly taken into consideration. The amounts allocated to the various eligible households will increase by an average of 50% compared to the situation currently in force.

The adaptations relating to the rent subsidy will be applicable automatically from 1 August 2022.

The new maximum amounts per month according to the composition of the household varies from €200 to €400. Further details are available online via: https://mlog.gouvernement.lu/fr/actualites.gouvernement%2Bfr%2Bactualites%2Btoutes_actualites%2Bcommuniques%2B2022%2B07-juillet%2B15-hausse-subvention-loyer.html.

The Ministry recalled that in 2019 the average outlay rate for tenants on the private market was 37.3% and more than a third of tenant households (34.5 %) allocated more than 40% of their income to the payment of their rent (plus charges).

“With the increase in the rent subsidy, the rental effort rate of tenant households on the low and modest income private market can be substantially reduced. This is particularly valuable support for single-parent families who are under pressure from current prices. All current recipients of the rental subsidy will have their financial aid adjusted automatically. On the other hand, I call on the other households to check their eligibility and to take the necessary steps with the One-stop shop for housing aid in order to be able to benefit from this financial support", underlined the Minister of Housing, Henri Kox, during the vote of the law in the Chamber of Deputies (Luxembourg Parliament) on 14 July 2022.