A coalition of property federations announced on Wednesday their intention to challenge the Brussels Region’s rent control regulation, which has been in effect since 1 May, in the Constitutional Court.
Organisations including UPSI-BVS, Embuild Brussels, CIB, SNPC-NEMS, Federia, along with BECI and UCM, aim to overturn the recent measures, claiming they "disproportionately infringe on property rights".
Since 1 May, tenants can appeal to the joint rental commission to assess the “fairness” of their rent, the federations highlight. An indicative rent grid is used for this purpose, but plaintiffs argue it is outdated and has not been revised for years.
While the Brussels ordinance allows ‘substantial comfort factors’ to be considered in rent evaluations, it lacks definition, creating legal uncertainty harmful to both tenants and landlords, they claim.
According to the rent grid, 50% of new leases are deemed legally excessive, they state, calling this a significant disruption to the rental market.
The federations argue that a severe lack of rental housing is the main issue in Brussels and that the recent measures deter investors, proving counterproductive.
"The well-intentioned measure has led to fewer available homes and skyrocketing prices, alongside slowing investment and worsening housing conditions, impacting tenants first," summarises Katrien Kempe of the Professional Union of the Real Estate Sector (UPSI-BVS).
The regulation aims to make the current rent scale (which is only indicative) legally binding.
Landlords would no longer be allowed to charge rents more than 20% above the "reference rent" for their area, as this is considered "excessive." Additionally, houses with substantial issues or defects will be penalised more severely as a result.
