Empty Dwellings Sought for Social Housing Scheme

Luxembourg's Ministry of Housing yesterday signed an agreement with the partners of the social housing scheme "Gestion locative social".

Thanks to the social housing rental management scheme, launched in 2009, nearly 1,000 empty dwellings were mobilised for the affordable real estate market. According to the Housing Ministry, a large number of owners and tenants have already benefitted from the system put in place by actors with a social vocation with the help of the ministry. The system has two major objectives: the mobilisation of unoccupied housing; and access to affordable prices for low-income households.

During yesterday's collective signing session of agreements with the partners of the Ministry of Housing, Minister Henri Kox launched an appeal to the owners of empty dwellings to put their properties at the disposal of the actors of this scheme.

The scheme can be implemented by any foundation, non-profit association or societal impact society (SIS) whose social purpose is the promotion of housing, as well as public promoters and social offices. These actors can sign a collaboration agreement with the Ministry of Housing and subsequently rent housing belonging to private owners. On average, rents paid to private owners are between 30% and 40% below market rents. The management of these dwellings is carried out by organisations approved by the Ministry of Housing, which have the obligation to make them available to low-income people excluded from the rental market. Organisations taking part in the scheme also provide support to people to increase their chances of being able to return to unsubsidised accommodation if necessary.

This social housing scheme is co-financed by the Ministry of Housing and the Ministry of Family, Integration and the Greater Region, as well as certain municipalities and their social offices. The latter cover staff and administrative costs, while the Housing Ministry is responsible for covering costs relating to the management of housing as well as costs directly related to housing, subject to the payment of a lump sum pf €100 per month per managed accommodation belonging to private landlords.

At the end of 2019, the approved organisations managed more than 845 dwellings belonging to private owner-lessors. The participation of the Ministry of Housing in this project amounted to more than €1 million in 2019.