Rents for the social sector may increase by 2.3 percent this year | living

Interest group of tenants the Woonbond sees the continuation of the rent increase as a ‘missed opportunity’ to do something for tenants with a narrow budget who would see more and more of their income go to fixed costs.

That 2.3 percent is last year’s inflation. In previous years, rents for social housing were allowed to rise with inflation plus 1 percent. But for the coming year, that extra 1% will be waived. A maximum rent increase of 3.3 percent also applies to tenants in the free sector. Landlords in that segment can decide for themselves whether they implement it.

The decision does not mean that all social rents will actually increase by 2.3 percent, increases could be even higher or lower. For people with higher incomes, housing associations can increase rents more, by a maximum of 50 to 100 euros per month, as long as this falls within the maximum rent limit of the house.

Last year, this income-related higher rent increase (IAH) was not applied due to the corona crisis. According to De Jonge, the scheme offers ‘corporations the financial scope not to give people who have difficulty paying the rent a 2.3 percent rent increase’.

Inflation has risen sharply recently, to 6.4 percent in January. Tenants in the social sector will not notice anything yet, but that higher inflation “could mainly be reflected in the rent increase of 2023”, according to the minister.

At the insistence of the House of Representatives, rents in the social sector were frozen last year. The freeze will therefore expire on 1 July. The previous cabinet was not in favor of the measure, and De Jonge also questions it. No or limited room for rent increases limits the room for investment in the construction of new homes and making existing homes more sustainable, he says.

The Housing Association sees the situation differently. Given the rising energy prices, which particularly affect low incomes in poor rental housing, at the very least a rent freeze on homes with inefficient labels would have been appropriate, the organization believes. The Woonbond says it is still consulting with the association umbrella organization Aedes about rent increases for the coming years. According to the representative, it is necessary to improve affordability for tenants. Too many tenants would not or hardly get by now.