Rents in Luxembourg continue to rise steadily, with some households now spending up to 40% of their total income on housing alone. according to Jean-Michel Campanella, president of the Tenant Protection Association.
In conversation with RTL Radio on Friday, he warned that those on minimum wages and single parents are particularly affected, raising the broader question of whether wages should increase or rents should come down.
Campanella explained that most people who contact the association do so out of fear of eviction, which he said is often linked to rent increases. He noted that tenants are frequently approached by landlords demanding an additional €500 per month, despite existing rules limiting rent increases to 10% every two years.
According to him, while some landlords may simply be unaware of these rules, others deliberately pressure tenants by telling them they must pay more to stay or by claiming a personal need for the property. He added that rents remain highest in and around the capital.
Campanella said that for tenants who can afford their rent and have children settled in school or childcare, being told to find a new home can come as a shock. He explained that while some try to cope with rising costs, others choose to move across the border, a trend he said is becoming increasingly common, even among Luxembourgers.
In his view, this creates a contradiction: while Luxembourg seeks to attract talent in areas such as artificial intelligence and digital transformation, those same workers may instead opt for cities like Paris or London if they cannot afford housing.
Referring to Thursday’s meeting of the parliamentary committee on housing, which took place after several cancellations, Campanella said it showed that the issue is still not treated as a top priority by policymakers, in contrast to the general public.
He pointed out that housing consistently ranks as the number one concern in surveys and added that many people already believe their children will not be able to become homeowners and may eventually have to leave the country if current trends continue.
He stressed that action is needed immediately, rather than in a few years’ time, as people are already leaving and struggling to find housing.
Campanella also criticised the lack of enforcement of existing legislation. He said that under current law, rent should not exceed 5% of the invested capital and argued that applying this rule could help bring movement to the market.
While acknowledging that this would not be a complete solution, he added that more should be done to address vacant properties.
According to him, although many proposals have been put forward, authorities often argue that municipalities cannot effectively monitor such properties, despite similar measures being implemented abroad.
Campanella pointed to Brussels as an example, explaining that authorities there identify vacant flats that are not being rented out and carry out checks on those that are.
He said that owners receive reminders and guidance on renovation options, along with access to financial support, and that further notices are issued if no action is taken within a set timeframe. In his view, a similar approach in Luxembourg could help mobilise several hundred additional homes.
Finally, Campanella called for the creation of a national rent commission. He said such a body could address not only rent levels but also issues such as service charges and rental deposits that are not always returned.
He suggested it could act as a mediation platform between landlords and tenants, helping to find practical solutions without systematically resorting to court proceedings.
