Flemish Parliament Approves New Innovative Housing Policy to Help Local Residents Buy Property in High-Real-Estate-Price Areas

In an important move to address housing shortages and affordability in certain regions, the Flemish Parliament recently approved a revised version of the "Living in Your Own Region" decree. This decree, originally introduced in 2013, was partially annulled by the Constitutional Court due to concerns about its constitutional validity. The revised version now grants local authorities in areas with high real estate prices the power to take steps to provide local residents with more opportunities to buy property.

Municipal Intervention in the Housing Market

The approved decree allows local governments to intervene directly in the housing market within their regions. Given the rapid increase in property prices in many municipalities, the Flemish government acknowledges the need to take action against rising housing costs that risk excluding local residents from the property market. Under the new regulation, municipalities can now reserve land or property for residents with strong ties to the municipality, such as those who have lived there for a long time or have family in the area. The goal is to preserve local communities and ensure that long-term residents have the opportunity to buy property in their own neighborhoods.

Fighting Social Displacement: A Key Objective

The primary objective of this decree is to combat social displacement, a pressing issue in wealthier municipalities, especially in the Flemish suburbs around Brussels. Flemish ministers Ben Weyts (N-VA) and Matthias Diependaele (N-VA) emphasize that social displacement is an "urgent and real problem." Many local residents can no longer afford their homes due to rising costs, forcing them to move to more affordable areas. This decree aims to support the local population by providing them with better access to the housing market, so they are not forced to leave their familiar surroundings.

Eligibility Conditions: Who Qualifies?

To qualify for this program, interested buyers must meet several conditions. The aim is to support those with a genuine connection to the region who might otherwise be excluded from property ownership. The three main conditions are as follows:

• Residency Requirement: The buyer must have been registered in the municipality, or in a neighboring Flemish municipality, for at least five consecutive years in the past ten years. This condition ensures the program benefits people who are truly part of the local community.
• No Current Property Ownership: The buyer must not own another property. The program is designed to help those looking to buy their first home, not those who already own real estate.
• Income Limit: The buyer’s income must not exceed a certain threshold, which will be set by the government. This ensures the program targets individuals who are struggling to afford the high property prices.
• 20-Year Residency Commitment: Buyers who participate in the program must commit to using the purchased property as their primary residence for the first 20 years. This prevents quick resale to external buyers or investors.

Implications for Buyers: What Can They Expect?

For eligible individuals, this decree offers a valuable opportunity to purchase property in municipalities that would otherwise be out of reach. Local governments are encouraged to take swift action to reserve properties for local residents. The new rules include financial mechanisms that will ensure these individuals benefit from the policy. While the details of financial support and execution procedures still need to be finalized, it is clear that this initiative represents a significant step toward solving the housing shortage in many desirable areas.

Conclusion

This new housing policy is a crucial step toward addressing the issue of unaffordable housing in regions with high real estate prices. By giving local authorities the ability to reserve properties for residents with a strong connection to the area, the Flemish government is taking an active role in preserving social cohesion in these municipalities. For local buyers, this policy offers a unique chance to buy property in an otherwise inaccessible market, providing hope for those who would otherwise be forced to leave their familiar environment.