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Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LU-2022-14/2258 – measures in Luxembourg

Rent freeze to cope with inflationary pressures

Gel des loyers

Country Luxembourg , applies nationwide
Time period Temporary, 31 March 2022 – 31 December 2022
Context COVID-19, War in Ukraine
Type Tripartite agreements
Category Responses to inflation
– Support for other basic items (e.g., food, housing, public transport, medicines)
Author Patrick Thill (LISER) and Eurofound
Measure added 13 May 2022 (updated 08 August 2022)

Background information

In the context of the war in Ukraine and in order to alleviate the pressure of rising prices on the purchasing power of the most vulnerable households, the agreement signed between the government, the Union des Entreprises Luxembourgeoises (UEL) and the trade unions Confédération Générale de la Fonction Publique (CGFP) and Confédération Luxembourgeoise des Syndicats Chrétiens (LCGB) provides for several support measures for tenants, including a rent freeze.

This action is in addition to temporary measures taken as of May 20, 2020, to suspend all rent increases for all residential leases through the end of 2022.

Content of measure

Among the measures decided, the Government has undertaken to introduce a temporary freeze on any rent adjustment in the sense of an increase in the rent for residential accommodation as referred to in Article 3, paragraph 5, of the amended Act of 21 September 2006 on residential leases, until the end of 2022.

Of course, the landlord will always be free to decide to reduce the rent or even to agree with the tenant on the payment of the charges in instalments in the event of the tenant's financial problems. Each tenant affected by the measure is of course obliged to pay the current amount of rent, as indicated in the lease contract.

Use of measure

No data available on the number of tenants affected.

However, it can be assumed that about 55,000 households are affected, as this measure is of interest to the 25% of resident households that are renting and paying private market rent.

Contents

  • Other topics

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Consultation through tripartite or bipartite social dialogue bodies Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

This decision was taken in the framework of the Tripartite meeting held on 22, 23 and 30 March 2022. The resulting draft law was approved by the Government Council on Thursday 7 April 2022.

Views and reactions

Approval by two trade unions: Confédération Luxembourgeoise des Syndicats Chrétiens (LCGB) and Confédération Générale de la Fonction Publique (CGFP), as well as by the Union des Entreprises Luxembourgeoises (UEL).

Sectors and occupations

    • Economic area Sector (NACE level 2)
      L - Real Estate Activities L68 Real estate activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2022), Rent freeze to cope with inflationary pressures, measure LU-2022-14/2258 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2022-14_2258.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.