The Minister for Housing, 
If we are to believe the Housing Observatory's note 42 on residents' housing policy preferences, two points stand out: the obligation on private developers to build cheaper housing and the introduction of ceilings on selling prices and rents. Do you think that developers are neglecting affordable housing in favour of more profitable supply? What then could the government do?
Claude Meisch. - Building cheaper by reducing quality is not a solution: it will pay off later. If we have to rebuild after ten years... On the other hand, by adapting standards and regulations, we can build more square metres of good quality - reasonable quality - but at a lower cost. That's the direction we want to go in with the national building regulations.
What's the state of play on the forgotten point of residential tenancy reform, namely capping rents and also selling prices?
"I believe that we will never have a fully regulated market for housing in Luxembourg. Prices will always be set by the market. Our priority - our very obligation - is to ensure that there is sufficient supply and that the market finds a balance that enables everyone to finance their own home. And for the most vulnerable, there are social programmes that obviously need to be strengthened. We need to encourage local authorities and all the players involved to do more to enable people on the lowest incomes to find housing.
The issue of rent ceilings is complex because of the clearly divergent interests of landlords and investors on the one hand and tenants on the other. But one cannot live without the other, and a consensus must be reached. If rent caps have been removed from the reform of residential leases, it's primarily because I didn't want to add a legislative shock to a market that was already sufficiently disrupted. But rent caps are still on the table. Discussions within the Housing Committee of the Chamber of Deputies are constructive. We could envisage adapting the legislation around the 5% currently in force, a regulation that is unworkable on the ground and not very transparent. And a point that is close to my heart: regardless of the ceiling that is chosen, a body will have to be set up to monitor the system and ensure effective mediation between the parties. The current rent commissions are outdated and no longer operate in line with reality.
We are also discussing a rent register that would give us an idea of the rents paid for a given type of property in a given location. This would help to make the market more transparent than it is.
Can we create a rent register when we still don't have a national building register?
"The government wants to establish a national register of buildings and housing. This will provide a clear picture of the existing stock and the proportion that is unoccupied. In cases of unjustified and persistent vacancy, a considerable tax will have to be paid. Especially as there are now incentives to encourage landlords to entrust their homes to social rental management (GLS).
Land classified as building land that is not used within a reasonable period should also be taxed. Owners who benefit greatly from such a classification for their land should contribute to the community by paying a considerable tax here too.
The communes are in favour of developing affordable housing stock, provided that it benefits their population.
The main opponent of this budget is the mayor of the country's largest city and a member of your country. Is Lydie Polfer's opposition likely to prevent the creation of such a register?
"Her opposition is very exaggerated. We spoke about it and she assured me that there was no difference with the government's programme, and that she would support the project in the Chamber of Deputies. The creation of such a register has always been her ambition, but she has never been able to make it a reality due to a lack of legal bases. Legal bases that we are now going to give to the communes in the law so that they can take the right decisions.
How many vacant homes do you estimate there are in Luxembourg today?
"Around 10,000.
Relationships with local authorities are crucial if we are to implement a housing policy that has an impact on the ground. One of your first announcements when you took up this ministry was that you would have to engage in more dialogue with them. What is your relationship with the municipalities today?
"Last year, I met around fifty burgomasters and aldermen, with whom I had very open discussions. The municipalities are in favour of developing affordable housing, provided that it benefits their population - a point on which I reassured them. Following this tour of the municipalities, we took a number of decisions. We set up a support service for the communes within our ministry, in permanent contact with political decision-makers as well as administrative and technical teams, to help them monitor their projects.We also listened to the communes on the reform of the housing pact, a funding instrument for the communes' housing policy.
We have also extended and harmonised grants to support infrastructure needs directly linked to the creation of new neighbourhoods. Finally, we are in the process of introducing provisions into the housing sector plan that will encourage the setting aside of well-located land for the development of property projects. If these projects are led by the municipalities - either from their own funds or in collaboration with the private sector - they will be eligible for increased subsidies. We want to work as closely as possible with the municipalities in terms of housing.
And what about relations with border municipalities in the context of cross-border development such as Belval?
"It is essential to harmonise these developments. This is what we are currently doing with the Terres Rouges slag heap brownfield site, most of which is located in France. We are working closely with the French authorities, at local, departmental and even national level. And if they were to develop projects for the French side of Belval, we would support them. I'm convinced that such projects must transcend borders. So why not get together to plan the Greater Region in a more coherent way than has been done to date?
Don't the specific administrative features of our neighbouring countries, particularly France and Belgium, put the brakes on this type of development?
"You can't expect me to criticise the internal organisation of neighbouring states. It is above all a question of political will, and I believe that this will exists. I've seen it with the development of the Terres Rouges slag heap, where everyone is pulling in the same direction. Given the attractiveness of the Grand Duchy as an employer, the French part of the project has strong economic potential."
