News item | 19-01-2024 | 13:15
At the proposal of Minister De Jonge of the Interior and Kingdom Relations, the Council of Ministers has agreed to submit the draft bill to apply a maximum annual rent increase in the private sector for another three years to the Council of State for advice. The proposal means that the maximum permitted rent increase will be equal to the average collective labor agreement wage development plus 1%. This extension must take effect from May 1, 2024 and will then apply until May 1, 2027.
Necessity maximum remains
The cap on the annual rent increase in the private sector has been in effect since May 1, 2021 and was regulated in the private member’s bill by former Member of Parliament Nijboer. Before May 2021, there was no limit to annual increases in the private sector. Because this limit was missing and due to the scarcity on the housing market, tenants were confronted with large rent increases. Evaluation of the initiative law (2023) showed that the need to cap the permitted annual rent increase is still present. That is why Minister De Jonge has prepared the bill to extend the cap. Part of the proposal is to re-evaluate the need for the cap after (for example) two years.
Certainty about housing costs
Rental contracts in the private sector will no longer be protected against excessive rental price increases without extension after May 1, 2024. With the cap, the government wants to give tenants in the private sector more certainty about their housing costs and their affordability for longer.