Brussels (Brussels Morning) – Brussels aims to increase affordable housing by allocating 25% of large developments, addressing the city’s housing challenges.
The Brussels administration has unveiled projects to buy 25% of large developments over the next ten years to utilise them for social housing, which is in the high market in the Capital region. Based on a recommendation that has yet to be voted through by the provincial parliament, 25% of any development over 3,500 m2 in the measure would have to be delivered to public property operators (OIPs) as soon as a construction permit is granted.
The room would then be used to create inexpensive social housing and “poor doors” – separate entries that segregate social residencies from costly properties – would not be permitted.
Public authorities would have 120 days to determine whether they wanted to buy the site or not. If they do, the developer would have to market it at a rate fixed below its market worth. But if no OIP wishes to buy the property the developer is free to vend it to private buyers without pricing constraints.
Over ten years (starting in 2025), the preferential rate presented to OIPs would decrease by 10% every year. It would change depending on the commune. The scheme could make 375 more social homes every year according to Idea Consult, the consultancy which maintained the study on behalf of the government. If consented, the changes will involve new building projects, including office blocks being transformed for residential use and any renovation of existing structures that create a surface area of 3,500 m² or more.
By permitting a ten-year “adjustment” course, Idea Consult (which developed the financing model) says the endeavour would be “painless” for developers and “acceptable” for land proprietors.
To bypass having to conform to the standards, one developer cautioned that the 3,500 m² threshold could be manipulated: “We shouldn’t be surprised to see a lot of 3,499m² buildings, which will allow the person peddling the land to receive better offers,” the source told L’Echo.
Landowners will also be affected, as developers will likely decrease their offer on land as a result of the ruling.
Brussels has the most heightened rental figures in Belgium along with the lower average annual income. More than 55,000 people are presently on waiting lists for social accommodation, with a recent OECD report cautioning that the city is mourning an “acute housing crisis” with rental and market norms markedly worse than those in municipalities such as London and Paris.
Late last year, State Secretary for Town Planning Ans Persoons (Vooruit) recognised that the Brussels-Capital Region must make reasonable housing a priority. The proposal to buy 25% of new developments goes hand in hand with a project to reform planning charges, which strives to encourage the building of more social housing.
The former suggestion is awaiting a thought from the Conseil d’État (Belgium’s highest administrative court). If consented during this mandate, the Federal Executive in power following elections on 9 June will be liable for seeing the initiative through.
The proposal in Brussels to allocate 25% of large developments for social housing aims to address the city’s acute housing crisis. It seeks to ensure affordable housing options by mandating a portion of new constructions for public property operators. However, concerns about potential loopholes, such as the 3,500m² threshold, have been raised.
The initiative, if approved, could significantly impact developers and landowners, potentially altering land valuation dynamics. With Brussels facing pressing housing challenges and a significant demand for social accommodation, this initiative aligns with broader efforts to prioritize affordable housing. Its fate lies in the hands of the Conseil d’État, with potential implications for future administrations.
