People in social housing move much less often than tenants in the private sector. If you start to regulate the private sector more, it will hold back relocations and that will be bad for the housing market and even for the economy.
This is the conclusion of De Nederlandsche Bank (DNB) after an investigation. This shows that homeowners move the least. This has to do, for example, with transfer tax and costs for the civil-law notary and the estate agent, while a tenant can usually simply cancel a rental contract. Tenants in the social sector move house 1.4 times more often than buyers. Renters in the private sector move 2.5 times as often as buyers.
According to DNB, the difference between social rent and the private sector could be due to long waiting lists and higher rents when moving for the former rental variant.
Scheefrenten
Those waiting lists may also apply to the private sector, warns DNB. The government intends to regulate the mid-market rent in the private sector from 2024. For example, there must be a points system for homes above a thousand euros, with a maximum of 187 points. Surface area and energy label play an important role in this. As a result of this regulation, the cabinet expects that in the long term more than 90 percent of rental homes under a thousand euros will be rented out. It is therefore not inconceivable that waiting lists will arise.
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Scientific research shows that an increase in regulation further restricts relocation mobility
In addition to waiting lists, this regulation can also lead to skewed tenant problems, according to DNB. These can arise when people earn a lot and do not move. After all, if you earn a lot and rent relatively cheaply, staying put can be attractive. ‘Scientific research shows that an increase in regulation further restricts relocation mobility’, according to DNB.
‘Limiting is undesirable’
And that is even bad for the economy, outlines the central bank of the Netherlands. According to DNB, it is important that workers are inclined to move from regions with less employment to regions with better job opportunities. The higher the relocation mobility, the lower the unemployment rate and the higher the labor productivity. These advantages mainly apply to the free rental segment. Low relocation mobility also extends commuting.
DNB emphasizes that it is not yet certain exactly what the rent regulation will look like. ‘High relocation mobility is not a goal in itself, but limiting it is undesirable.’
On Friday, housing minister Hugo de Jonge will come up with a concrete proposal. His plan has been criticized. For example, landlords seem to be doing everything they can to exceed the maximum number of points, after which they are free to continue to receive a high rent, according to a report from Sunday evening. News hour. The Woonbond therefore argues for a maximum of 250 points in that new system. There is also the fear that project developers will soon be unable to carry out new construction projects because they are no longer profitable. Construction costs have increased significantly in recent times.
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