News item | 17-12-2024 | 16:42
Tenants in the private sector may receive a maximum rent increase of 4.1 percent in 2025. This maximum will be 7.7 percent in mid-priced rents from 1 January 2025 and 5.0 percent in social rents from 1 July 2025. In the private sector, it is legally established that the rent may increase with inflation or collective labor agreement wage developments. Landlords may then add 1% to the lowest percentage; that is the maximum permitted rent increase. In the mid-rental sector, the collective labor agreement wage development is calculated at +1%. Because the collective labor agreement wage development this year was higher than inflation, landlords in the mid-rental sector may charge a rent increase of a maximum of 7.7%.
Maximum by law
The maximum increase percentages in the mid-rental and private sector are legally established to keep housing affordable; By linking it to the collective labor agreement wage development, the rent may only increase once incomes have also risen more. How much rent increase tenants in the mid-rental and private sector will actually pay depends on their rental contract. This may include a lower rent increase. If a higher rent increase has been agreed in the contract, the tenant does not have to pay it in full. The landlord may not increase the rent by more than the maximum percentage for 2025. This also applies if the landlord and tenant have agreed on a higher increase.
Maximum rent increase in the private sector
The maximum rent increase in the private sector is based on the lower of the collective labor agreement wage development or inflation (CPI). Landlords may add 1% to the lowest percentage. From December 2023 to December 2024, inflation was (on average) 3.1%. Wage development was 6.7%. That is why the inflation rate will be used in 2025 to calculate the maximum rent increase. This leads to a maximum permitted rent increase of 4.1%. The maximum increase applies to independent homes – single-family homes, studios and apartments – in the private sector. The maximum also applies to moorings for houseboats.
Maximum rent increase for medium rent
For the mid-range rental, the collective labor agreement wage development is leading. Landlords may add 1% to this percentage. From December 2023 to December 2024, the collective labor agreement wage development was 6.7%. Therefore, the maximum rent increase in 2025 is 7.7%. This maximum percentage applies to:
- independent homes, studios and apartments;
- with a rental contract from July 1, 2024 or later; and a
- initial rent in 2024: above €879.66 and not more than €1,157.95; or a
- initial rent in 2025: above € 900.07 and not more than € 1,184.82.
Free sector or regulated
Whether a home falls into the private sector depends on the rental price at the time of concluding the contract and the liberalization limit of that year. The initial rent is the rent agreed upon when signing the contract. The liberalization limit is the amount that indicates whether a home is a social rental home, mid-range rental home or private sector home. This limit increases a little every year, just like the maximum rental prices for a certain number of points. The government keeps track of where the liberalization limit is; see the overview of rental liberalization limits.
The system of regulated rental prices has been expanded since July 1, 2024. Mid-range rental properties are also included, from 144 to 186 points. Landlords of these properties must adhere to the rules for determining an initial rent. Only landlords of homes with 187 points and more are allowed to determine the initial rent completely freely.
Rent increase for social rent
Until July 1, 2025, the maximum rent increase is the same as from July 1, 2024. This is usually a maximum of 5.8% and for independent homes in some cases € 25 to € 100. The maximum increase of 5.8% also applies to rooms and caravans. and pitches.
During the Housing Summit on December 11, the cabinet, corporations and municipalities announced that the average rent increase per housing association before 2025 is limited to 4.5%. For each individual home, the rent increase remains 0.5% higher than the maximum average rent increase. As a result, the maximum rent increase for social rental properties (from housing associations and other landlords) will be 5.0% from 1 July 2025.
From 2026, the maximum annual rent increase will be linked to a three-year average of inflation. This will also be laid down in law. As a result, the rent increase varies less strongly each year. This means that tenants know better where they stand, while corporations can count on more stable income. This improves affordability for tenants and allows corporations to invest sufficiently in new construction and improvements to homes.