Paperjam.lu

Housing is a key factor in placing households at risk of poverty in Luxembourg. Photo: Jisu Han/Unsplash 

“The constant rise in the cost of housing has consequences for vulnerable people. Whether it is the difficult end of the month for low wages, problems keeping housing in case of job loss or long-term illness, the difficulty of obtaining a lease when you are a refugee, or an elderly person, all age groups are concerned,” Red Cross director general Michel Simonis said on Tuesday as the not-for-profit marked the release of its annual activity report.

The cost of buying property in Luxembourg rose on average 5% per year in recent years, with a marked 9% jump from the fourth quarter of 2017 to the same period in 2018. Meanwhile, monthly advertised rents rose annually by 3% from 2008 to 2018, according to the Observatoire de l’Habitat. Prices are driven up by a shortage of housing, which is growing ever more acute as a result of a population explosion. Indeed, national statistics body, Statec, estimated in a recent report that Luxembourg would need to construct 6,500 units per year from 2010 to 2030 to keep up with demand and stabilise house prices, compared to the current rate of 2,900.

The slow response of the government has forced the Red Cross to grab the bull by the horns and set up its own housing strategy. It is assessing the availability of land where affordable housing could be constructed. At the same time, it has also created a dedicated team of two people, of which one comes from a vulnerable background, to coordinate with public and private actors to develop housing projects. It is expected that the team’s know-how and background will help drive forward the construction of more affordable housing solutions.

“We will make those skills available to those who want to work with us,” solidarity activities director Gilles Dhamen said.

The Luxembourg Red Cross had some 2,400 staff members in 2018, a year in which its costs rose by 7% compared to the previous year. This growth, it said, was thanks to the support of donors and volunteers but also because it adapts its work to the needs on the ground, in helping the most vulnerable people. Among the projects it worked on in 2018 are specific services for the homeless, refugees, sex workers, people at risk of poverty, survivors of domestic violence, young people, the ill and elderly, as well as people in need abroad.