POLITICS & INSTITUTIONS - ECONOMY

Housing motion calls for land purchase fund



The government plans to construct 20,000 new home in the short-term and 45,000 in the long-term Pexels

The government plans to construct 20,000 new home in the short-term and 45,000 in the long-term Pexels

A group of Luxembourg MPs has called for the creation of a special investment fund for housing allowing authorities to acquire land for the construction of future homes.

The motion was presented on Thursday and adopted by a large majority of MPs during a debate on Luxembourg’s acute housing shortage.

Housing minister Marc Hansen outlined the issue that each year 13,000 new residents move to Luxembourg, widening the gap between housing supply and demand. At the same time, there are currently 2,500 people on the housing fund waiting list and construction projects which are underway fall short of meeting this backlog.

The government plans to construct 20,000 new home in the short-term and 45,000 in the long-term, Hansen explained.

In addition to creating a fund for purchasing land, the motion called for a review of the housing support packages offered as well as the state guarantee for purchasing housing for individuals.

Furthermore, the motion called for a property tax reform to better reflect the real value of various land which could be used for construction.