Luc Frieden’s government wants to make it easier to buy affordable homes in Luxembourg. Bill No. 8353 of February 7, signed by the Ministers of Finance and Housing – Gilles Roth and Claude Meisch, respectively -, provides for a package of measures for housing, including increasing the eligibility limits for the purchase of affordable and reduced-cost homes.
This has been one of the issues raised by real estate developers, such as SNHBM, since the current limits are considered “low” given the purchasing power of people who are eligible, but who are unable to obtain a loan from the bank due to high rates. interest.
On the other hand, those who have the chance to obtain credit end up not being eligible, because their income is higher than the limit. As a consequence, the number of buyers has been decreasing considerably.
The current limits regarding the net monthly income considered in the attribution of the eligibility certificate by the Ministry of Housing were defined in the law of August 7, 2023. For example, a single person must earn less than 4,475 euros net per month to be entitled to the purchase of affordable housing. A couple without children cannot jointly earn more than 6,865 euros per month. A couple with one child must earn less than 8,107 euros to receive support.
In the new bill, the Government proposes an increase in these limits, so that more people are covered by the eligibility criteria. For example, the maximum limit for a single person would be 7,534 euros net per month and for a couple without children it would be 11,302 euros, values considerably higher than those currently in force. A couple with one child could earn up to 14,315 euros and with two children up to 17,329.
| Type of household | Current limit for affordable purchasing (net monthly income) | New limit for affordable purchasing | Current limit for purchasing at reduced prices (net monthly income) | New limit for purchasing at reduced prices |
|---|---|---|---|---|
| 1 adult without children | €3,968 | €6,397 | €4,475 | €7,534 |
| Couple without children | €6,081 | €9,596 | €6,865 | €11,302 |
| Couple with 1 child | €7,180 | €12,155 | €8,107 | €14,315 |
| Couple with 2 children | €8,123 | €14,714 | €9,172 | €17,329 |
| Couple with 3 children | €8,830 | €17,273 | €9,961 | €20,343 |
| Value for each additional child | €982 | €1,919 | €1,109 | €2,260 |
The bill is currently being analyzed, after the State Council issued its opinion on March 19, a source from the Ministry of Housing told Contacto. The legislative process of the parliamentary dossier can be consulted here.
According to our source, there is still no date for the possible approval and entry into force of the new law. The matter will still be debated in the Chamber of Deputies.
Tags: Government easier buy affordable homes Luxembourg
