The rents of private sector homes in the five largest Dutch cities increased in the first quarter of 2023. Compared to the same period a year ago, the Pararius rental housing platform in Amsterdam, The Hague and Rotterdam recorded an increase in the square meter price of more than 4 percent. In Eindhoven this was 2.3 percent and in Utrecht 1.4 percent. On average across the country, square meter prices fell by 1.9 percent.
‘Consequence of government policy’
Amsterdam remains the most expensive city in the Netherlands when it comes to renting a home. After an increase of 5.8 percent, tenants there now pay an average of 25.68 euros per square meter.
New tenants paid an average of 16.85 euros per square meter per month nationwide.
Pararius, one of the largest rental housing platforms in the Netherlands, attributes the increase to new government policy.
This encourages investors to sell homes rather than hold them for rent. As a result, the number of rental properties in the private sector is declining.
According to Pararius, there was almost a fifth less free sector housing available than in the same period last year.
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From 1 January 2024, landlords must adhere to a points system, which determines the maximum rental price of a home.
With the new policy, Minister Hugo de Jonge (Public Housing, CDA) wants to curb exorbitant rents.
According to Pararius, square meter prices rose in three quarters of the medium-sized and large Dutch cities. The fact that the national price trend was still falling is partly because rental homes in the five largest cities now only account for 38 percent of the total supply, compared to 51 percent last year.
Drenthe cheap, but rising
Only in the provinces of Noord-Holland and Utrecht did average prices fall by approximately 1.5 percent.
In the other ten provinces, rental homes became more expensive. Drenthe takes the cake, with a price increase of 18.1 percent compared to a year ago. New tenants in Drenthe now pay an average of 12.86 euros per square meter, far below the average square meter price of 16.86 euros.
A version of this article also appeared in the newspaper of April 13, 2023.