News item | 20-11-2023 | 10:47
The Council of State has her today advice published about the affordable rent bill. The law must, among other things, curb excessive price increases in the mid-rental sector, so that tenants once again pay a price that matches the quality of their home.
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 draws attention to the effect of the regulation on the supply of rental properties. She advises the government to investigate further the question of whether sufficient affordable housing remains available.
Minister Hugo de Jonge: “This is an important step towards parliamentary consideration of the bill. Tenants count on the government to intervene if rents in the mid-rental sector become unaffordable. And investors and landlords want clarity about policy, so that they can continue to invest in affordable mid-rental homes and housing quality. I am pleased to read that the Council of State understands these principles. The Council advises us to provide more clarity on a number of points. We have already started working on this and we are now preparing the law for consideration by the House of Representatives.”
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. We are working to reduce the housing shortage with various instruments (including the Start Building Impulse, the Housing Development Incentive and the Housing Deals). The willingness to invest is also taken into account when designing the regulations. 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 Home Valuation System 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. The entire package of measures and how this contributes to sufficient affordable housing will be further substantiated in the explanatory memorandum of the bill.