Indexation of Belgian rents: new rules

Are you a landlord planning to increase your rents? The rules have changed! You will now have to comply with the new calculation method based on your building’s energy performance certificate.

The surge in energy prices is affecting us all. To help Belgian tenants, the government has introduced a cap or a ban on rent indexation based on the property’s energy performance certificate (EPC) and the region in which it is located.

What is the EPC?

The EPC is a certificate that assesses a building’s energy performance. It uses a classification scale ranging from grade A (very energy-efficient) to grade G (very energy-intensive).

The expert who provides you with the EPC uses a calculation method that takes various criteria into account to determine the classification index:

• The floor area and volume of the building
• The level of thermal insulation
• The presence of photovoltaic panels or solar water heaters
• Types of chassis
• Primary energy consumption for heating
• The presence of a renewable energy generation system
• …

What are the new rules for indexing rent?

Rent indexation in the Walloon Region

In the Walloon Region, these measures will come into force on 1 November 2022. The cap on rent indexation is as follows:

• For properties in Wallonia with an EPC rating of A, B or C: they will not be affected by the implementation of these measures.
• For properties in Wallonia with a EPC D certificate: their indexation will be capped at a maximum of 75%.
• For properties in Wallonia with an E-rated energy performance certificate: their indexation will be capped at a maximum of 50%.
• For properties in Wallonia with an EPC rating of F or G: any rent increases will be prohibited.
• For properties in Wallonia that do not have an EPC: any indexation is prohibited.

This measure will not be retroactive and will therefore not apply to indexation requests made since 1 January 2022.

Rent indexation in the Brussels Region

In Brussels, the order has been in force since its publication on 14 October and will remain so for a period of 12 months. The cap on rent indexation is set as follows:

• For properties in Brussels with an EPC rating of A, B, C or D: they may be subject to index-linking in accordance with the conditions set out in Article 1728bis of the Civil Code.
• For properties in Brussels with an E-rated energy performance certificate (EPC): they may be subject to indexation in accordance with the conditions set out in Article 1728bis of the Civil Code, up to a maximum of 50 % of the permitted indexation.
• For properties in Brussels with an EPC rating of F or G: these will not be eligible for index-linked rents.
• For properties in Brussels that do not have an EPC: any rent increases are prohibited.

The order does, however, set out two prerequisites for indexing a rent:

1. The landlord must have registered the tenancy agreement (in accordance with section 227 of the Housing Code).
2. The landlord must have provided the tenant with an energy performance certificate for the property being let (in accordance with Article 217 of the Housing Code).

Rent indexation in the Flemish Region

The measures taken in Flanders are very similar to those in Wallonia and Brussels.

There are also other points that must be observed. For example, these measures apply only to tenancy agreements dated after the date on which the new legislation came into force: that is, after 14 October for Brussels, or after 1 November for Wallonia.

According to data from a 2021 report published by the CEHD, nearly 75% of households in Wallonia will benefit from a cap on rent indexation. It is also worth noting that more than 30% of these households live in properties with an energy performance certificate (EPC) rating of F or G.