Brussels Region approves official rent cap to fight excessive rents

Brussels Region approves official rent cap to fight excessive rents
Credit: Belga / Benoit Doppagne

The Brussels Parliament approved an ordinance proposal to combat excessive rents on Friday. There were 61 votes in favour and 16 against.

According to regional housing researchers, around 20% of rental properties in Brussels are considered to have excessive rents. A proposal spearheaded by PS and backed by Ecolo and other left-leaning parties could finally activate legislation passed in 2021 to address the issue.

"The right to housing is enshrined in the constitution and should be an absolute priority," said Brussels MP Martian Casier (PS). "Our aim is not to attack owners and landlords, but to fight the practices that limit access to the housing market that prevent Brussels residents, especially at the lower end of the rental market, from finding proper housing at a fair rent."

At the heart of the debate is the 'rent reference index', a tool introduced in 2022 to help tenants and landlords set rents to a median value based on the neighbourhood and property features. The index is based on data from 14,500 rental contracts and has been adjusted for inflation but not yet updated with more recent leases.

Suppose the rent exceeds the reference by more than 20%. In that case, tenants can actually bring the case to the Joint Rental Commission (CPL) (a body composed of landlord and tenant representatives), which gives a non-binding opinion. So far, only one of four rulings by the CPL has found a rent to be excessive.

Brussels skyline. Credit: Belga/Laurie Dieffembacq

Tense debates

The new measures that were up for vote would expand the CPL's powers, allowing it to issue a "presumption of excessiveness." This would remain non-binding but could be used in court by tenants seeking rent reductions. Crucially, the law would prohibit setting rents above the index, although there is no direct enforcement mechanism.

The Brussels Parliament will decide whether to strengthen the fight against excessive rents in the region. The sessions were debates, not least due to the broader politically charged context. The proposal was recently approved by the Housing Committee with a narrow margin (eight votes to seven) following a month of hearings and debates. The issue is causing division beyond political lines.

So far, the CPL has issued four rulings, but only one of which determined that the rent in question was excessive.

Right-wing parties, along with the construction sector, argue that the data is out of touch with market realities and that enforcing it would plunge many landlords into illegality, potentially discouraging investment in the housing market.

Left-wing parties, supported by tenants' associations, insist the measure simply gives more leverage to Brussels residents suffering from rental excessiveness, without imposing strict rent controls across the board.

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