News item | 12-05-2023 | 16:29
The vast majority of Dutch people are in favor of government intervention in rents when these become too high for the average Dutch person and are no longer in proportion to the quality of the home. This is the conclusion of an opinion survey conducted this week among a representative group of Dutch people in the context of the Affordable Rent Act.
Rental properties rented out too expensive
Due to scarcity on the housing market, rents in the private sector have risen sharply over the past five years. The increase is greatest in Amsterdam, Rotterdam, Utrecht and The Hague (G4). With a change of occupants, the monthly rent increase was more than € 100 in the years 2017-2022. In the G4, the increase even amounted to an average of € 160 per month. More and more tenants pay a rent that is no longer in proportion to the quality of the home they rent. This certainly applies to the mid-rental sector. In 2018, 28% of mid-market rental properties had a higher rent than the maximum rent according to the housing valuation system (WWS). In 2021, this share had increased to 41% (source: WoON 2021).
Support for intervention is large
To ensure that tenants pay a fair price for their home, the cabinet wants to regulate the mid-market rent and make the WWS mandatory. This is regulated by the Affordable Rent Bill and an amendment to the Residential Rents Decree. A representative opinion survey has now examined the support for this. That turns out to be big. For example, the vast majority (84% of the respondents) do not consider the current average rent of a home in the private sector in the Netherlands (approx. € 1,011 per month for 60m2) to be reasonable. An equally large proportion (86%) thinks it is the government’s task to intervene in rents when they become too high for the average Dutch person and are no longer in proportion to the quality of the home. According to three-quarters of the respondents, the national government is the first to act.
Reactions to measures
The reactions to the measures in the new law aimed at regulating the mid-market rent are generally positive. For example, 79% of the respondents respond somewhat to very positively to the proposal to lower rents if the insulation of a home is poor. 74% agree with the proposal that tenants should always be allowed to check the rent of a new contract with the rent assessment committee. An equal number are in favor of the proposal to ensure that middle-income rental homes are occupied by middle-income households, and that the annual price increase is linked to the increase in collective labor agreement wages.
Better tenant protection
The point of departure in the bill is that rents will be in proportion to the quality of the home. Landlords are obliged to adhere to the maximum rents. In practice, this would mean that the rent of more than 300,000 homes will fall by an average of € 190 per month in the long term. The municipality can also actively enforce to ensure that landlords do not rent too expensive. To keep investment in existing and new homes attractive, the cabinet wants to modernize the WWS. There is also a 5% surcharge for new construction. The bill will go to the House of Representatives after the summer.
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