What Does the Re-indexing of Rent Prices in Brussels Mean for Tenants and Landlords?

After a period of protection for tenants in energy-inefficient housing, the Brussels government has decided not to extend the temporary rent indexation measure that was implemented during the energy crisis. This decision impacts both tenants and landlords. In this article, we explain what the changes are and what they mean for the Brussels rental market.

End of the Rent Indexation Freeze

Starting from October 14, 2024, all rent prices in Brussels can be indexed again, including those for homes with poor energy efficiency. The temporary freeze on rent indexation was introduced in October 2022 to protect tenants in homes with low energy performance (EPC) from sudden rent increases. Tenants in properties with an EPC score of G or F were unable to see their rent increased, while homes with an EPC score of E could only be indexed at 50%.

This policy was part of broader measures the Brussels government implemented during the energy crisis, aiming to protect tenants from rising energy costs. However, now that the energy crisis has become less of an immediate concern, the Brussels government has decided to lift the rent indexation freeze.

No Double Indexing

A major point of contention was whether landlords could make up for the missed rent increases during the freeze by double indexing. However, the Brussels government has made it clear that this will not be allowed. A new "corrective ordinance" will be introduced, incorporating a mathematical formula to ensure that landlords cannot make up for missed indexations. This means that rent prices will not suddenly increase twice in order to compensate for the missed indexation during the past period.

The Position of the Secretary of State for Housing

The Secretary of State for Housing, Nawal Ben Hamou (PS), had hoped to extend the rent indexation freeze further. She proposed to continue protecting tenants, particularly in energy-inefficient homes, from rent increases. However, this proposal was not supported by her coalition partners, such as Open VLD and Défi, who argued that the temporary measure was an exception that is no longer needed. These parties pointed out that the other regions had already resumed rent indexation and that the Brussels situation was not much different from that in Flanders and Wallonia.

What Does This Mean for Tenants and Landlords?

For tenants, the end of the rent indexation freeze means that rent prices can rise again from October 2024, depending on inflation and the applicable indexation formula. This could lead to significant increases, particularly in areas where rent prices are already high.

For landlords, the resumption of rent indexation allows them to adjust their rent prices in line with inflation. This provides landlords with the opportunity to increase their rental income to keep up with rising costs, but the corrective ordinance ensures that landlords cannot "catch up" on missed indexation from the previous period.

Conclusion

Re-indexing rent prices in Brussels is an important step toward normalizing the rental market after the exceptional measures taken during the energy crisis. While tenants may face rent increases again, the introduction of the corrective ordinance ensures that landlords cannot double the rent increases to compensate for missed indexation. This helps maintain some stability in the Brussels rental market, while also preventing tenants from facing excessive increases all at once.