On 21 February 2018, the Luxembourg Cabinet made the decision to adapt the a law concerning housing assistance and leasing for residential use.
The Cabinet decided this week, on a proposal from the Minister of Housing, Marc Hansen, various adaptations of the amended law of 25 February 1979 on housing assistance, specific amendments to the amended law of 21 September 2006 on the lease for residential use as well as adjustments to the relevant Grand Ducal regulations. The measures were presented today, on 23 February, by Marc Hansen to the members of the Housing Commission.
In order to alleviate the constraints faced by individuals in accessing rental housing on the private market, the Ministry of Housing has redefined the criteria for allocating aid for the financing of a rental guarantee. The rental guarantee necessary for the conclusion of a lease on the private market- representing in many cases up to three months rent- may be provided by the State if applicants meet certain conditions.
Furthermore, the new income threshold for rental guarantee assistance is now set at €2,900 net for a single individual and will be increased according to the composition of the household. In addition, the applicant will only have to prove a regular income of three instead of the current six months. The proposed new criteria guarantee a rent representing an effort rate of up to 40% of the net income, without the rent per se being capped, as is the case in the current regulations which excludes any aid beyond a rent of €1,612.28 euros.
Another adaptation concerns the overhaul of the legal provisions on the criteria of rental, sanitation, hygiene, habitability and security of rental housing. These criteria, which are currently regulated in the amended law of 25 February 1979 concerning housing assistance, will henceforth be defined in the amended law of 21 September 2006 on the lease for residential use.
The revised criteria will be more clearly defined in the near future and the purpose of the legislation is to make homeowners and housing operators more accountable.
