Brussels city officials enact new law to control rental rates | Photo: Fight/ Shutterstock
New legislation came into effect this month in Brussels to regulate rental property prices affecting over 30,000 homes, mostly short-term rentals.
According to a Euro News report, a rent exceeding 20 per cent of the regional guide rates violates the new regulations. Local authorities claim the crackdown is to preserve housing access for the people of the Belgian capital, particularly in the city centre area where property pressure is high.
Before this new law came into effect on May 1st, residential rental prices rose faster than inflation because rates were freely determined under the contractual autonomy principle. That led to unfair, excessive rents throughout the Belgian capital, The Brussels Times said.
Judges to rule on rental price abuses
However, now, the reform to Article 224 of the Brussels Housing Code means that tenants can complain about unfair rents before a judge, who will rule whether the new law has been infringed.
The judge’s decision will be based simply on whether the rent in dispute exceeds 20 per cent of the national guideline, except in cases in which the property has inherent qualities to support the increase.
In the case of property in poor condition and unfit to be inhabited, the judge will rule that it should not have been rented in the first place.
“The method for determining the reference rent is based on market averages and objective characteristics of the property, such as age, size, location, and energy performance,” The Brussels Times wrote.
Short-term and Airbnb rentals
The law also focuses on unlicensed tourist rental properties listed on Airbnb, leading to at least one building that city officials have sealed off, a decision that has met with mixed opinions.
“There are many people on the street with suitcases who come here for a stay. And then there are a lot of people who don’t know how to find accommodation, people who work who can’t find a place to live,” says Maurice Demarteau, neighbour of the sealed building.
However, as could be expected, a hotel manager is in favour. “It’s obviously a step in the right direction. We’re calling for the regulations in force to be applied. This is essential,” said Rodolphe van Weyenbergh, spokesman for the Brussels Hotels Association.
City officials hope this drastic move will send a clear message to other owners who might be tempted to break the rules, Euro News reported.
