When energy prices broke all records in 2022, the Flemish government immediately intervened. Rents for poorly insulated homes were temporarily frozen between October 2022 and October 2023. The measure was intended to support tenants during the energy crisis. Due to high inflation, they were not only in danger of being confronted with high price increases, but also with high energy bills.
It is this rule that the responsible minister for housing Melissa Depraetere now wants to reintroduce, according to the policy plan. From 2028, rental properties with an EPC label E or F may no longer be indexed. “This ban serves as an incentive for landlords to invest in energy-efficient renovations, which reduces energy bills for tenants. Where this does not happen, it will improve affordability for the tenants of these homes, often the most vulnerable families,” it said.
Today, Flanders has approximately 1.15 million E and F homes. That is more than a third (34 percent) of the housing stock in Flanders. “Our Flemish homes are among the worst insulated in Europe,” says Depraetere. “That is bad for the climate, but also for the wallet. Anyone who rents an E or F home today pays twice: a high rent and a high energy bill. By introducing an indexation ban, we are encouraging landlords en masse to renovate and thus reduce energy bills. Good for the climate and your wallet.”
Rental market under pressure
Because this concerns such a large share of Flemish homes, Depraetere also hopes to make major profits here. The minister therefore wants to provide accompanying measures. “Just as with households with a lower income, I also provide landlords with intensive renovation guidance with the necessary support. This takes the form of collective renovations, group purchases or prefinancing. In this way we make renovation feasible and affordable.” Depraetere also wants to further roll out the conformity certificate that monitors the living quality of rental properties throughout Flanders. Such a certificate is currently already mandatory in a third of the municipalities. (Read more below the photo)
“We fear that the new obligations will mainly ensure that rental properties disappear from the market again,” says Kristophe Thijs, communications director of real estate federation CIB.
Real estate federation CIB fears that the new obligations will cause even more rental properties to disappear from the market. “Renovation is of course important, but we fear that the new obligations will mainly ensure that rental properties disappear from the market again,” says communications director Kristophe Thijs. “The reality is that poorly insulated buildings will be purchased by people who are prepared to renovate and mainly live in them themselves. Renovating a rental property also has practical objections: are you going to temporarily evict a tenant? First and foremost, we must ensure that the rental market does not come under even more pressure.”
The CIB is happy with the term that Depraetere has in mind. “You can’t just do that along the way the rules change, as happened during the energy crisis. If the minister now announces this to be implemented in 2028, landlords can prepare for it.”
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