The Brussels Government has unveiled plans to buy 25% of large developments over the next ten years to use them for social housing, which is in high demand in the Capital region.
Based on a proposal that has yet to be voted through by the regional parliament, 25% of any development over 3,500 m2 in size would have to be offered to public property operators (OIPs) as soon as a building permit is granted.
The space would then be used to create affordable social housing and "poor doors" – separate entrances that segregate social residencies from expensive properties – would not be permitted.
Public powers would have 120 days to decide whether they wanted to purchase the site or not. If they do, the developer would have to sell it at a rate fixed below its market value. But if no OIP wishes to purchase the property the developer is free to sell it to private buyers without pricing constraints.
Aerial view of Brussels. Credit: Belga / Laurie Dieffembacq
Over a ten year period (starting in 2025), the preferential rate offered to OIPs would reduce by 10% every year. It would vary depending on the commune. The scheme could create 375 more social homes every year according to Idea Consult, the consultancy which carried out the study on behalf of the government.
If approved, the changes will apply to new building projects, including office blocks being converted for residential use and any renovation of existing buildings that creates a surface area of 3,500 m² or more.
Developers unenthusiastic
By allowing for a ten-year "adjustment" period, Idea Consult (which formulated the financing model) says the initiative would be "painless" for developers and "acceptable" for land owners.
To avoid having to conform to the measures, one developer warned that the 3,500 m² threshold could be exploited: "We shouldn't be surprised to see a lot of 3,499m² buildings, which will allow the person selling the land to receive better offers," the source told L'Echo.
Landowners will also be impacted, as developers will likely reduce their offer on land as a result of the ruling.
Woluwe-Saint-Pierre is one of Brussels' most expensive communes and historically has had fewer housing initiatives. Credit: Belga / Thierry Roge
Brussels has the highest rental figures in Belgium along with the lowest average annual income. More than 55,000 people are currently on waiting lists for social housing, with a recent OECD report warning that the city is suffering an "acute housing crisis" with rental and market standards markedly worse than those in cities such as London and Paris.
Late last year, State Secretary for Town Planning Ans Persoons (Vooruit) acknowledged that the Brussels-Capital Region must make affordable housing a priority. The proposal to purchase 25% of new developments goes hand in hand with a plan to reform planning charges, which aims to encourage the construction of more social housing.
The former proposal is awaiting an opinion from the Conseil d'État (Belgium's highest administrative court). If approved during this mandate, the Federal executive in power following elections on 9 June will be responsible for seeing the initiative through.
