Dutch Minister of Housing Hugo de Jonge has announced measures to make rental properties in the bigger cities more affordable again. However, most of the landlords and real estate agents fear the opposite effect.
The plans to make rental properties more affordable
The rental Housing Valuation Rating (points) system will be applicable to an extra 300,000 properties, causing a rental decrease of €190 on average. The minister’s aim is to make rental homes affordable for teachers, nurses and police agents. That is good news one would think. However, there is also another side to it.
The points system explained
To explain the points system you need to know the difference between the social rental market and the liberalized rental market. Social rental properties, with a rent ceiling up to € 808.06 (2023) are only available to people earning up to a certain salary level. In the liberalized sector properties are not bound to a ceiling. Social housing apartments have 141 or fewer points, while the current liberalized sector offers houses with more than 142 points.
In the new plan
s houses with up to 187 points will have a maximum rent of approximately € 1,100. This ceiling will only be applicable for newly rented properties, so current rental agreements are not subject to the plans.
Point are awarded for various factors including;
- Size of the rooms
- Sizes and equipment of the kitchen, toilet, bathroom
- Outside space
- Energy efficiency label
- The WOZ value (is the value used for taxation and is derived from the actual value of comparable properties that have been recently sold)
You can check how many points a property has with the Huurprijscheck (in Dutch only, sorry!).
Opposite effect; fewer rental properties at a higher price
Many landlords have already sold their rental properties because they feel that they will not earn enough income due to the new cap. Moreover, new construction projects will be less attractive for project developers to build for the same reason. So there will be a lower supply of rental properties on the market, leading to… higher prices in the uncapped liberalized market of properties with more than the 187 points.
When will the plans come into effect?
This will be in 2024, but -again- we are already seeing the opposite of the desired effects.
What can Settle Service mean in this market?
Settle Service assists many of our clients with their home search. This is a constantly changing market so we adapt our assistance as required to give your employees the best relocation experience. We discuss the expectations with your employees, advise on neighbourhoods and budget and propose suitable options. We coordinate and accompany viewings, create and follow up on the rental offer and negotiate the rental contract. The result is that –although still difficult in a number of cases- our housing assistance makes a big difference in helping your employees find new homes with less stress.
Please contact Settle Service at email@example.com.