News item | 11-04-2022 | 15:46
Today, the bill on the abolition of the landlord levy went into internet consultation. The landlord levy is a tax on social housing. Since 2013, all landlords who own more than fifty social rental homes pay this tax on the value of their home ownership.
More investment space for landlords
The landlord levy has risen sharply in recent years as a result of the rise in house prices. Because the rental income of landlords such as housing associations is not or hardly linked to the house (purchase) prices, the landlord levy became an increasingly heavy burden. The abolition of the landlord levy creates more investment capacity. Binding performance agreements are made with housing associations about what will happen with the financial space. The money released will be used for the construction of flexible housing, affordable rental housing, renovation, sustainability and for the quality of life in neighbourhoods.
Rent increase free sector less influenced by inflation
The Housing Rental Prices Implementation Act will also be amended. The statutory maximum of the annual rent increase for private sector homes will be replaced as of 1 January 2023 by a maximum to be determined by ministerial regulation. This is important because in the event of high inflation, the maximum rent increase can be set at a lower level than the currently applicable ‘inflation + 1 percentage point’. This prevents excessive rent increases and keeps rents more affordable.
Respond to the bill
Stakeholders can respond to the bill to abolish the landlord levy and change the maximum rent increase in the private sector via internet consultation† The consultation will run from April 11 to May 9, 2022.