Real estate agents in Noord-Holland have little confidence that home seekers will benefit from the new demerit points system for the free rental sector, as the cabinet wants to introduce on 1 January 2024. The new points system is intended to ensure that tenants pay a fair(er) price for their home in the free rental sector. Brokers suspect that it actually invites landlords to creatively bookkeeping and deters investors because the payback period will increase.
Although the latter seems to be cooling down a bit, the housing market is still under considerable pressure. There is more demand than supply, driving up prices. The cabinet wants to relieve the pressure by building more and awarding points to houses in the free rental sector.
What does this points system mean?
The points system already exists for social housing. The number of points for a social rental home indicates the quality of the home. For example, surface area, energy efficiency and the value of the home (WOZ value) are examined. The rent is determined on this basis. In 2022, the price of a social rental home will be EUR 763.47 or lower.
This scoring system is not yet used in the free sector. There is also no maximum price for this type of rental property. From 1 January 2024, the cabinet wants to introduce a similar scheme for private sector homes. Points determine the maximum rent for a home. At the moment there is no ceiling of a maximum rent.
Brokers in the region wonder to what extent this new system will change the current situation. Steven Lagerweij, general manager of Vivantus, is concerned about current developments in the housing market, including Minister De Jonge’s new points system.
Lagerweij expects that the market will continue to be disrupted: “I understand what De Jonge means by that points system, but he does not oversee the consequences of this. Investors will not finance new construction projects because they have to meet too many points. For example, they cannot maintain a low rent. , because they also have to remove the costs. In this way you keep that backlog, because supply and demand do not come together.”
‘Outdated system’
Jerry Wijnen, chairman of the Amsterdam Makelaarsvereniging, sees the points system as outdated. “This system could well be renewed at some point. But if you have too many points, you can rent out for the market rent. The disadvantage of the points system is that it has been adjusted so much in recent years, that applies; the higher your WOZ value, the higher the points.”
Wijnen also indicates that there is still no clarity about when and how the points system for categorizing rental properties by price will be presented. “De Jonge wants housing, investments, young people. I want to say; Mr. De Jonge, we just want clarity! Talk to each other, because everyone actually wants the same thing. Sit in a room together until it is resolved!”
“Many landlords will probably play smart with the new points system”
Professor of housing systems Peter Boelhouwer of TU Delft does not see this as the solution either: “Not much is known about the points system yet, we do not yet know how many points it will be. Many landlords will then probably play it smart.”
According to Boelhouwer, for example, they will find other ways to play out this point system. “They then split a large house into smaller houses, for example. Or they go above that limit, so they rent out above 1,200 euros. At the moment, the ministry is conducting research into this points system and the housing market.”
Expats and high rent
Striking are the high prices of (owner-occupied) homes – which are increasingly being rented out for shorter periods and rented out to expats.
“It is a general trend that a lot is rented out to expats. It is a very specific market. That number of expats is still growing strongly. The migration balance is just as much as last year,” says the professor.
An employee of 123Wonen Haarlem recognizes this image. “Usually we rent out for 1 or 2 years, which is short for us. Most of the people we rent out for are mainly people who go abroad for work or private reasons or rent out as an investment.” She also emphasizes that expats also have to live somewhere. “Expats can actually afford those higher rents. About 90 percent of our tenants are expats, dare I say that.”
“The possible solution? That is flexibility; there are many more options”
The chairman of the Makelaarsvereniging Amsterdam also sees the number of expats increasing. “There are a lot of internationals who come to the Netherlands to work. That is paid by the employer,” says Wijnen. “The first few months they are in a very favorable tax climate. They are willing to pay.”
‘Flexibility is the key’
It is clear that there must be a change in the supply on the rental market. Wijnen and Lagerweij do not see the points system as the holy grail. They both argue for more options regarding permits and buying houses, so that more space is created on the rental housing market.
Wijnen: “More homes must be built, you must ensure that you build additional homes. 100,000 more homes are needed per year than now. Signing a mortgage with several people would be an option, but that is also difficult from a tax perspective, because you have to pay and you are all liable.”
Lagerweij argues for change: “The possible solution? That is flexibility; there are many more options. For example, allowing more types of mortgage, or concluding rental contracts with friends.” In addition, the government should make more plans for construction, Lagerweij believes. “In the second quarter of this year, only 15,000 building permits were issued throughout the Netherlands! That is less than last year, when the promises were not fulfilled either.”
