Rental arrears for social housing units have surged to €41 million
The financial stability of social housing providers in Flanders is facing increasing pressure as rental arrears have climbed sharply. According to data requested by Flemish Member of Parliament Gijs Degrande, total outstanding debts reached nearly €41.5 million in 2024, marking a significant increase from approximately €23 million recorded in 2020.
This surge, representing roughly an 80% increase over four years, underscores the growing economic strain on the sector’s operational capacity. The figures encompass not only unpaid rent but as well unreimbursed costs, such as damages to properties left by former tenants.
Gijs Degrande emphasized that the financial health of these organizations is a critical concern. “The financial health of the housing companies must not be underestimated. They must intervene quickly by drawing up payment plans or, for example, involving OCMW [Public Centre for Social Welfare]. In extreme cases, legal steps must also be taken,” Degrande stated. He further noted that “social housing is about rights, but also about obligations.”
The spike in arrears comes amid a period of significant structural upheaval for the sector. Over the last decade, the system was overhauled to simplify administration, merging former Social Housing Offices (SVK) and Social Housing Companies (SHM) into consolidated housing companies (WM). Currently, one housing company operates per region, with a total of 42 such organizations nationwide.
Industry experts suggest that these systemic transitions may have contributed to the current financial imbalance. Gert Eyckmans, representing the umbrella organization Initia, noted that the transfer of vast amounts of property during these mergers created administrative complexities that temporarily hindered the tracking and collection of rental arrears. “When the housing companies were formed, a great deal of patrimony shifted, which made administrative management more complex,” Eyckmans explained.
Degrande argued that the transition to 42 stronger organizations was essential, as more robust entities are better equipped to handle construction and renovation while maintaining a firmer financial footing. He asserted that structurally strengthening these housing companies and aggressively addressing rental arrears are evident steps toward ensuring the sector’s long-term viability.
The trend highlights a precarious balancing act for the social housing model, which must remain affordable and accessible while staying financially sustainable—a challenge that continues to drive debate among policymakers and critics.
