The repayment period for the rental deposit scheme in Flanders has been extended from two to three years, according to Flemish Housing Minister Melissa Depraetere (Vooruit).
The loan was introduced when the rental deposit was increased from two to three months, a controversial decision as it put vulnerable tenants in a difficult position. Since then, tenants have had the option to take out an interest-free loan to cover the deposit.
The previous two-year repayment term has proven challenging for many, with 10% of all loans in arrears by the end of last year. The extension to three years reduces the average monthly repayment for rental deposit loans from €84.73 to €56.49.
In 2019, 3,392 families received such loans. By 2024, this number had risen to 4,913 families.
