Brussels Considers Ban on Rent Indexation for Less Energy-Efficient Homes

Brussels is considering a ban on rent indexation for certain properties, in response to growing concerns over energy consumption and rising energy costs. This proposal, currently under discussion in Brussels' political circles, aims to provide tenants and landlords with more clarity on the future of rental prices, particularly for less energy-efficient homes.

What Does the Proposal Entail?

The goal of this new policy is to regulate rent prices based on the energy performance of homes. Similar to Flanders, a distinction would be made between properties based on their energy certificate (EPB). Homes that are well-insulated and have low energy consumption would still be able to implement full rent indexation. This applies to properties with an EPB rating of A, B, C, or D.

For homes with less energy efficiency, such as those rated in category E, a limit will be imposed. In these cases, only 50% of the rent can be indexed. This measure aims to encourage homeowners to invest in energy-saving improvements, without tenants bearing the full brunt of rising energy costs.

Full Block on Indexation for Poorly Insulated Homes

For the least energy-efficient homes, those falling under categories F and G, a complete block on rent indexation will be enforced. This means that rent prices for these properties cannot be adjusted for inflation or the cost of living. The aim of this decision is to motivate landlords to upgrade their properties in terms of energy performance, contributing to a more sustainable and affordable housing market.

However, there are two key conditions attached to the proposal: compliance with the housing laws that have been in effect since 2011, and possession of a valid EPB certificate. These requirements ensure that the policy targets homes that genuinely have issues with energy consumption.

Reactions and Proposed Adjustments

The PS, which supports this bill, aims to implement the law as soon as possible so that tenants renewing their leases can benefit from this measure. The goal is to make rent prices fairer, especially for tenants in less energy-efficient homes.

On the other hand, the opposition, represented by the MR, is requesting three key adjustments: postponing the implementation of the law until January 1 to allow the Housing Advisory Council time to review the proposal, integrating public housing operators, and providing an exception for property owners who have already been working to improve the energy efficiency of their properties by applying for grants.

Conclusion

The proposal to limit rent indexation for homes with poor energy ratings is an important step toward a more sustainable and affordable housing policy in Brussels. This measure could benefit tenants by limiting rent price increases, while encouraging landlords to make their properties more energy-efficient. Whether the proposal will be approved remains to be seen, but it is clear that the Brussels government intends to take action to help manage energy costs for tenants.