News item | 21-02-2023 | 19:51
The Senate has adopted the 2023 Rent Reduction Bill for low-income tenants. As of March 1, 2023, housing corporations can submit a request to the Tax and Customs Administration for the purpose of proposing a rent reduction to tenants with a higher rent.
A legal basis is required for the preparation of income categories by the Tax and Customs Administration for the implementation of the rent reduction. The Senate approved the bill on 21 February 2023. The bill will be published in the Staatsblad before March 1, 2023, so that the law will enter into force on March 1, 2023.
The rent reduction
With this bill, tenants with a rent above €575 (price level 2023) and a low income (based on the registered collective income in 2021) will receive a rent reduction as of 1 July 2023. If the income has decreased after 2021, the tenant can apply for a rent reduction from the housing corporation until 30 December 2024 at the latest.
This rent reduction was foreseen in the National Performance Agreements for 2024. However, in consultation with housing corporations, the government decided to bring forward this rent reduction. With this, housing associations will reduce higher rents to € 575 per month by 1 July 2023 at the latest. The reduction applies to households that live in a socially independent rental home and earn no more than 120% of the minimum income in accordance with the Rent Allowance Act.
Propose rent reduction: no later than 31 May
The bill is aimed at housing corporations submitting a rent reduction proposal to tenants before 1 June at the latest. The rent reduction will then take effect no later than 1 July 2023. Unlike with regular annual rent increase proposals, there is at least 1 month between the submission of the rent reduction proposal and its commencement date.
Income limits rent reduction for low incomes 2023
– Single households (under state pension): €23,250
– Single elderly households (AOW): €24,600
– Multi-person households (under state pension): €30,270*
– Multi-person elderly households (AOW): €32,730*
*) Income of children living at home under the age of 27 is not included in multi-person (elderly) households
Apply for rent reduction yourself
If the income has decreased after 2021, the tenant can apply for a rent reduction from the housing corporation until 30 December 2024 at the latest. There must have been a drop in income for six months or more and a rent above € 575.00.
Tenants of a caravan belonging to housing corporations may also submit a rent reduction request to the housing corporation themselves. The tenant of an independent home or of a caravan must then demonstrate that the joint gross income of the residents over the six months prior to the request did not exceed half of the applicable income limit. The income of children living at home who are not yet 27 years old does not count.
Web portal for housing associations opened on 1 February
From 1 February 2023 it is possible to request an account from the Tax Authorities via the web portal for the income-related higher rent increase. This can then also be used to request income categories for the rent reduction (from 1 March 2023). The account that is requested can also be used to request the income categories for the income-related higher rent increase. Are you working for a corporation on rent reduction or income-related rent increase and have you not yet applied for an account? Then do this as soon as possible www.inkomensdependentrentincrease.nl.