The changes come as part of the package of measures agreed by the main parties when the long-awaited federal government was formed at the end of last year. Several responsibilities were transferred from the federal government to the regions, including housing policy.

Until last year the system allowed tax relief worth €3,000 to each member of a legally defined couple buying a home. Under the new government accord, that will be replaced by a tax credit of 45% of interest, deducted from taxable income. According to one calculation, that works out at a benefit of €2,700 instead of €3,000. That change will take place before the responsibility is handed over to the regions.

There has been confusion, however, over how the regions were to administer the system. Income tax remains a federal matter, and the regions have no authority over tax relief. Flanders’ minister-president Kris Peeters told VRT radio it was too soon to know: The regions have until 15 February to present their proposals. Homeowners in Flanders, meanwhile, were increasingly anxious about a huge change in their tax bills.

Peeters called on homeowners not to be concerned and pledged his government would continue to encourage home buying. “I understand that people want certainty as quickly as possible. I understand the worries of the people of Flanders, but there is nothing to worry about,” Peeters said.

A continuing question is whether the money from the federal government intended to cover the new regional responsibilities will be enough. According to federal finance minister Steven Vanackere, the total is €1.4 billion, of which €929 million would go to Flanders. However, research carried out by Nancy Huyghebaert of the University of Leuven suggests the cost of the total package ought to be €4.87 billion, or €3.23 billion for Flanders.