Is your rent still under €1,000? Well, we have good news for you — you may (still) be able to claim rent protection! 👀
The Dutch Minister for Housing, Hugo de Jonge (a familiar face from our never-ending coronavirus lockdown days!) plans to introduce expanded rental protection — to the tune of €1,000. A more detailed plan is set to come out this November.
This decision was announced at a debate in the Tweede Kamer (the parliamentary lower house) yesterday, reports RTL Nieuws.
How does it work?
Rent is based on a system of points — points are added for factors like the size of rooms and whether the property comes with a kitchen, toilet, bath…etc.
Landlords that set rent much higher than the maximum figure it should go for are straying into grey territory. Tenants that calculate a discrepancy can then go to the Huurcommissie (rent commission) and request a reduction. 📉
However, for rents above the rental protection limit, landlords can decide how much they want to charge for their properties.
The current limit for rent protection sits at €763.47, and newer constructions will automatically have the raised rental protection factored in.
For existing buildings, however, rental protection will only kick in when there are new tenants.
This move is aimed at middle-income renters, as they earn too much for social housing and cannot afford the ridiculously expensive properties in the free market.
The two important sides to the debate
De Jonge does note that vital employees — like policemen and nurses — need accommodation in the bigger cities (tough ask, seeing as how we’re in the midst of a housing crisis).
However, he’s also keeping an eagle eye out for housing corporations and investors to fund the construction of more housing.
Translation: In order to protect tenants from absurd rents, mid-rent will now be regulated to around €1,000. By clarifying the limit, investors can continue investing in the construction of new middle-rent housing.
De Jonge says that investors need a return on their initial investment, and hope that this latest move will motivate them to finance new rental accommodation.
It’s not all been smooth sailing
Investors have been hesitant about constructing new rental housing in recent months, due to De Jonge wavering on where to cap the price protection between €1,000 and €1,250.
The uncertainty over the exact value (and worries about their return on investment), led to some property developers protesting the new rental protection plans.
Taking their concerns into consideration, De Jonge has now settled for the lower limit of €1,000.
And what does this mean for us?
It remains to be seen how this will affect the rental market — and whether landlords will raise their rents over €1,000 to escape the new cap.
What do you think of this latest move? Tell us all about it in the comments below!
Feature Image: European People’s Party/Wikimedia Commons/CC2.0