Housing leaders in major Dutch cities have once again urged interim housing minister Hugo de Jonge to take a firm stance against exorbitant rents charged for small apartments.
De Jonge is set to release finalized legislation in the coming weeks to extend rent controls to encompass the majority of the country's housing stock. While the outcome depends on the next government, cities emphasize the urgent need for action.
The existing point system for determining rents covers most rental housing but leaves a gap, allowing landlords to set arbitrary prices in the "free" sector. Amsterdam's housing chief, Reinier van Dantzig, cited instances of people paying €2,200 or €2,300 to share a chicken coop. Utrecht's housing director, Dennis de Vries, highlighted the struggle for middle-income families, including essential workers like police officers and teachers, who are priced out of social housing and unable to afford property purchases.
Private landlords argue that further extending rent controls would diminish their return on investment, leading to signs of property sell-offs. The Pararius rental property platform reported that approximately 8% of properties currently for sale were formerly rentals.
Housing minister De Jonge acknowledged investor sales but noted a decrease from 2022. While this could benefit potential buyers, De Vries cautioned that legislation alone wouldn't solve all issues, emphasizing the need for clarity and passage of the proposed legislation in parliament.
In Amsterdam, where 23% of rental housing falls outside rent controls, Van Dantzig sees potential for reduction. However, uncertainties about future developments hinder developers, prompting a call for parliamentary clarity.
The level of support for the measure in the new parliament remains uncertain. Opposition from parties like VVD and BBB, along with doubts expressed by NSC's Pieter Omtzigt, raises questions about widespread backing. The home affairs committee is slated to discuss the plans for increased regulation of the rental sector.
De Jonge anticipates the legislation, covering 90% of the rental market, to take effect in July, potentially reducing rents for hundreds of thousands of homes by an average of €190 per month for new tenants. Additionally, a new law requiring cities to establish a public register to report landlords charging excessive rents or engaging in discriminatory practices took effect on January 1.