Cabinet concludes national performance agreements for public housing with Aedes, Woonbond and VNG | news item

News item | 30-06-2022 | 12:00

Minister De Jonge: ‘We are faced with major challenges that we can only tackle together. The national performance agreements are more than just agreements. It shows that public housing has made a comeback. In this way we give housing associations the space to do what they were founded for: the realization and proper maintenance of affordable and sustainable homes for people who need it. †

Chairman Aedes Martin van Rijn: ‘This agreement enables us to look ahead again, instead of looking back. Because we can throw off the yoke of the landlord levy, we get the space to invest again, while at the same time we keep housing affordable and moderate the rents for the people who need it most. We invest in more new affordable homes, accelerate the sustainability of the housing stock and strengthen liveable districts and neighbourhoods. In this way, housing associations are taking the lead in combating the housing crisis. But we do not do this alone: ​​the strength of this agreement lies in the fact that we do this together with municipalities, residents and home seekers. We need each other in the acceleration we want to achieve together.’

‘This agreement contains major steps to make renting more affordable,’ says Woonbond director Zeno Winkels. ‘For example, more than half a million renting households with a low income will receive a rent reduction and many homes will be insulated without a rent increase in return. So that the tenant takes maximum advantage of the lower energy bill. At the same time, the annual rent increase will be below the wage development in the coming years.’ Winkels also thinks it is good that the social rental sector is growing again. ‘After years of contraction in the social sector, the social stock will start to grow again. This trend reversal is desperately needed.’

Doubling of construction production of social rental housing

In order to tackle the current shortage of social rental housing and the waiting lists, the construction pace of the housing associations must increase considerably in the coming years from approximately 15,000 in recent years to almost 30,000 by 2030. The aim is for associations to build 250,000 social rental homes in the period 2022 to 2022. /m 2030. In addition, it has been agreed that corporations will build 50,000 mid-range rental homes up to and including 2030, whereby a balanced mix must be found of homes with a price between 850 euros and 1,000 euros. Before the end of the year, the provinces and municipalities will draw up regional housing deals together with housing associations and tenants. For example, it becomes clear per municipality how many social housing corporations will build up to and including 2030, and how many mid-rental housing associations will be realizing per municipality. The municipalities will make clear at the end of 2022 where these homes will be located. We aim for at least 30% social rent per municipality. There will also be a clear definition in the law of what social rent is.

Responsible rent increases and rent reductions for lower incomes

In the affordability agreements, a balance has been found between generic measures that benefit all tenants and specific measures that benefit people with lower incomes and people in non-sustainable homes. Housing associations will moderate rents for all tenants over the next three years. The link with inflation is then released and the maximum rent increase is 0.5% lower than the collective labor agreement wage development. As a result, rents will rise less rapidly than wages. To improve the rent for tenants with a low income, tenants with an income at or below the 120% social minimum will receive a legally required one-off rent reduction to €550 (price level 2020). Approximately 510,000 households are eligible for this. They receive an average rent reduction of an average of €57 per month. This will replace a generic rent freeze in 2024. Finally, housing associations will give priority to allocating part of their (new) medium-sized rental homes to transferees from the social rental sector.

Far-reaching sustainability of more than 675,000 homes

Making the built environment more sustainable is a complex task that will demand a lot from municipalities, housing associations and tenants until 2050. Parties need each other to achieve the sustainability challenge in such a way that everyone ultimately benefits. Housing associations will accelerate the sustainability of all their homes with an E, F or G label up to and including 2028. This is in line with the goal of extensively insulating 675,000 homes by 2030 and making 450,000 existing housing association homes natural gas. In order to allow tenants to benefit from this sustainability improvement, it has been agreed that they will not receive a rent increase after insulation measures that lead to a better energy label.

€1.5 billion home improvement and tackling damp and mold problems

Corporations and municipalities want to increase their efforts to improve investment in housing, the living environment, the well-being of tenants and social cohesion in the neighbourhood. Up to and including 2030, housing associations will therefore invest an additional €200 million annually in home improvement, with a focus on an accelerated approach to moisture and mould, lead pipes, asbestos and fire safety. From 2026, there may no longer be any homes with a poor state of repair (with the exception of homes that are replaced by new construction). Improving the quality of life requires housing associations not only to invest in improving the quality of their homes, but also to invest in the quality of life in the neighborhood and social management in the neighbourhood. In total, housing associations will allocate an extra €75 million annually up to and including 2030.