If the thought of skyrocketing rent has you sweating bullets, there’s some excellent news shooting your way: a better cap on Dutch rental prices is officially here. 🥳🏡
Dubbed the Affordable Rent Act, this new governmental policy regulates rent for properties in the mid-range sector.
In other words, housing that costs an average of €1,157.95 per month is about to become protected from overly greedy landlords.
Finally, renting is set to become more affordable
“The explosively increased rents due to the enormous shortage of rental properties are no longer affordable for many people with a normal income,” Hugo de Jonge, Minister for Housing, stressed while speaking at the senate this week.
“This law will make a huge difference for many thousands of tenants.”
And just how huge of a difference is De Jonge’s “huge difference”? 🤔
To understand this, you need to first understand the Dutch home valuation system.
The home valuation system
From July 1, 2024, landlords will be expected to abide by a maximum rent set by the home valuation system (WWS or woningwaarderingsstelsel).
This maximum rent is determined by a points system based on several factors: the home’s energy label, its size, the kitchen and bathroom facilities, whether or not there is a garden… etc.
Once summed up, the total number of points decides how much a property can be rented out for.
Mid-range rental properties generally score between 144 to 186 points and previously carried no maximum rent — which meant landlords could charge as much as they wanted.
For now, landlords who don’t base their rent on the home valuation system will benefit from a grace period of six months.
However, from January 1, 2025, landlords who deliberately obscure how many points a property has — or willingly overcharge on rent — will receive a fine from their municipality.
But what does this (actually) mean for me?
This means that tenants in the mid-range sector can appeal to the Huurcommissie (rent assessment committee) if they feel they are being overcharged.
Put simply, if you are renting a mid-range sector property, and you think your landlord is charging you too much for too little, they will be required to lower your rent.
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In fact, with this new system rent is estimated to drop by an average of €190 per month.
As a result, a total of 113,000 mid-range rental homes are predicted to return to the “affordable segment.”
What do you think of this new rental act? Tell us your thoughts in the comments below!
Hi :). Does this apply to only new contracts? Or will the old rental contracts also be revised?
Thank you
It’s terrible news for renters. These laws will make the housing shortage worse. Very few landlords can afford to rent out their properties at these lower rents (most mortgages are higher than these rental prices), forcing them to sell. That leaves only apartments in social housing which takes 5-10 years to get or an apartment in the free sector which are mostly, big, expensive apartments and with less rentals available, landlords will charge even higher prices. As landlords sell more houses will shift to the buying/selling markets. So unless you’re wealthy or ready to buy, renting just became more difficult.