Annual rent increase for nonsubsidized housing sector capped

Minister of the Interior and Kingdom Relations, Kajsa Ollongren, will be introducing measures to improve access to the housing market for starters and middle-income earners. The Minister is capping the annual rent increases for the nonsubsidized housing sector, wants to introduce buy-back protection and will make it possible to extend temporary tenancy agreements temporarily.

Minister Kajsa Ollongren: "Everyone has a right to a decent, affordable home. It is especially important to have a roof over your head in these uncertain times. That's why I'm working hard on measures to improve the affordability of homes and combat excesses."

Cap on annual rent increase

The annual rent increase in the nonsubsidized housing sector is being capped at inflation + 2.5%. This cap ensures that tenants in the nonsubsidized housing sector also know where they stand and are not unexpectedly faced with rent increases. This means that the maximum annual increase in rent is equal to that of tenants in public-sector rented housing. A legislative proposal to make this possible is being prepared.

te koop woning bord woningaanboed huisvesting hypotheek
Image: Pieter Pennings
te koop woning bord woningaanboed huisvesting hypotheek

Buy-up protection

Municipalities are being given the opportunity to introduce buy-up protection in neighbourhoods where this is necessary. This is intended to prevent affordable owner-occupied homes for starters and middle-income earners from being bought up by "buy to let" investors. It also prevents the quality of life in a neighbourhood from being pressurised because all owner-occupied homes are being bought up. Buy to let is not always undesirable and should remain possible in specific cases, e.g. in the case of a house that is rented out in the middle market segment. The municipality must then be able to issue a permit for neighbourhoods subject to buy-up protection in order to make renting possible. A legislative proposal is being prepared for this as well.

Temporary tenancy agreements possible for a longer period of time

The possibility of extending a temporary tenancy agreement will be improved. A standard temporary agreement can now be concluded once. Consideration is being given to the possibility of extending by one or two years up to a maximum period of three years. In this way, a landlord can offer more tailored alternatives and tenants have greater flexibility. A legislative proposal to make this possible is being prepared.