News item | 26-09-2023 | 4:40 PM
Today, Minister Hugo de Jonge informs the House of Representatives in a letter to Parliament about the expected permitted increases in rents in the regulated and free sectors for next year. Rents in the regulated segment (social rent) are expected to increase by a maximum of 5.8% from July 1, 2024, because they follow current wage developments. In the free segment, the lowest percentage of wage development or inflation determines the maximum rent increase. In that sector, a permitted rent increase of approximately a maximum of 4.9% is expected for 2024.
Final permitted gradients in December
The permitted gradients are an indication. The period over which the average inflation and wage development is calculated is from December 2022 to the end of November 2023. The maximum rent increase percentages will be definitively determined and announced in December 2023. This is done on the basis of the actual average collective labor agreement wage increase and consumer price index (CPI) as published by Statistics Netherlands (CBS). The final maximum percentage by which rents may increase in 2024 may therefore change.
National performance agreements
In the National Performance Agreements it has been agreed that rent increases will be based on the rent quote. For the regulated segment, this means that the rent increase will be at most as high as the average wage development. In this way, the rental ratio for tenants remains on average the same as last year. For association tenants, the rent ratio will improve on average because the rent increase must be 0.5% below wage development.
Rent increase 2023
The rent moderation agreed in the performance agreements has worked. In 2023, rents in all segments increased slightly, by an average of 2% compared to 2022. This increase is well below the inflation of 10% in 2022 and the permitted rent increase of 3.1% in 2023. The rents of regulated properties at housing associations increased by an average of 0.1% in July 2023. This is also because the rents of approximately 600,000 low-income tenants have been reduced to €575 per month.
The purchasing power of the lowest incomes will be supported in 2024 with a package of measures from the Cabinet, including an increase in housing allowance by more than €30 per month for 1.5 million households. In addition, the Affordable Rent bill also regulates the rents of mid-range rental properties, which will eventually reduce the rent by an average of € 190 per month.
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