Social housing rents to rise in July

Landlords of independent rental homes (apartments or homes with their own kitchens and bathrooms) in the regulated sector (social rent) are also allowed this year to let income play a role in the annual rent increase. The base rent increase of up to 2.5 percent will take effect on July 1st. The base rent increase is based on the inflation rate of the previous year (1 percent in 2014) plus a margin of 1.5 percent. Due to lower inflation, the rent increases are lower than the 4 percent increase of 2014. The Cabinet wants the income-related rent increase to promote the flow in the regulated sector. People with a middle- and higher income will get a rent increase of 0.5 percent and 2.5 percent respectively in addition to the base rent increase. People on the lowest incomes will be almost completely reimbursed for the rent increase by the housing allowance. The maximum allowable rent increase as of July 1st is 2.5 percent for households with an income below or equal to 34,229 euros, 3 percent for households with an income above 34,229 euros but below or equal to 43,786 euros and 5 percent for households with an income above 43,786 euros. Landlords that do not make use of the income-related rent increase may apply only the basic rent increase of up to 2.5 percent. There will be a rent increase of up to 2.5 percent for dependent rental homes (homes that share a bathroom or kitchen with other tenants) such as student housing, rooms and caravan parks.