Just like in the market for owner-occupied homes, the private sector rent is also showing signs of cooling. The largest price increases are over and housing platform Pararius expects some more supply in the coming period.
In the second quarter of 2022, the average rent for rental properties in the private sector rose by 1.3 percent compared to a year ago. This is evident from the latest quarterly figures of Pararius† This concerns houses of more than 763 euros basic rent per month, the so-called liberalization limit. Rents are then no longer protected.
The fact that the price increases are below the inflation level is a sign that there is little scope left, concludes director Jasper de Groot. “Although the differences are large per city and segment. Furnished homes are still rented out for a much higher price. But certainly if you compare it with the owner-occupied market, with a year-on-year difference of more than 10 percent, it has become relatively quiet on the rental market.”
Buying market affects rental market
De Groot believes that the supply of rental housing will increase in the near future, which is due to the also larger supply on the owner-occupied housing market. “What you hear on the owner-occupied market is that houses stay for sale longer. As a result, home seekers are likely to miss out and some homeowners may have to rent out one of their homes temporarily. That can cool the free sector rental market more.”
New tenants in the free sector paid an average of 17.04 euros per square meter per month last quarter. That is an increase for the fifth quarter in a row, but not as sharp anymore. In 2020 and 2021, the average square meter price also fell sharply due to the corona crisis, in particular because holiday homes were permanently rented out and foreign employees (expats) left for their country of origin.
In the five largest cities in the Netherlands, Amsterdam, The Hague, Eindhoven, Rotterdam and Utrecht, the average rent for private sector homes rose more than the national average in percentage terms. In Eindhoven, the cheapest G5 city, new tenants paid 11.1 percent more than a year ago (17.25 euros) and in Amsterdam rents for private sector homes rose by 10.5 percent. New tenants in the capital paid an average of 24.67 euros per square meter per month. In Utrecht, too, an average of more than 20 euros per square meter of basic rent is paid per month.
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