News item | 20-11-2023 | 11:32
The Council of State has her advice published about the affordable rent bill. This law regulates, among other things, that excessively high rents in relation to the quality of the home in the mid-range rental market are restricted. In the advice, the Council of State writes that it understands the measure in the bill that rents for social housing are mandatory. At the same time, the Council requests further explanation on a number of points.
Better protection for tenants
The Council of State writes in its advice: “Government intervention for better tenant protection is understandable due to the tightness on the rental market.” People with a middle income find it very difficult to find affordable rental housing in the current housing market. More than half of the private rental properties where rental price protection already applies are rented too expensively. And new residents regularly pay considerably more for the same rental property. In 2023, as a new tenant for a private sector home, you will pay on average 10.9% more than the previous resident(s). This is the strongest increase since 2014.
This will come to an end with the affordable rent bill. The proposed regulation of mid-priced rents offers tenants better protection against excessively high rents. Making the housing valuation system (WWS) mandatory ensures that the maximum permitted rental price can actually be enforced.
Continue investing in mid-priced rentals
To make mid-range rent affordable again, it is crucial not only to focus on regulation, but also on creating an attractive investment climate for new affordable homes. The Council of State advises, among other things, to provide more clarity about the willingness to invest. To maintain this level, the minister recently increased the temporary price surcharge for new construction from 5% to 10%. This price surcharge can be charged for homes for which construction starts before 2026. In addition, the WWS is being modernized, so that the system is better aligned with the quality of new mid-rental homes. This way, the energy efficiency of a home and the outdoor space are better appreciated.
Parliamentary consideration
Now that the advice of the Council of State has been received, the bill can be adjusted to the Council’s wish to provide more substantiation. Ultimately, tenants, market parties, corporations and governments benefit from certainty. The law is being prepared for this, so that the way is clear for a parliamentary debate in the House of Representatives. Because the legislative process has been delayed, the minister previously announced that the law could be introduced with a six-month delay as of July 2024.