Private sector rents' sharp increase continues

The average rental price per square meter for a home in the private sector increased by 5.9 percent in the second quarter, compared the same period last year, according to a report on the housing market by estate agents' association NVM and property management group VGM, reports.

The average rent price was 9.95 euros per square meter in the second quarter. For an entire home, the average price amounted to at 978 euros a increase of 0.7 percent higher than in the second quarter last year. According to the report, the differences in increase between square meter and entire homes indicate that mostly smaller homes were rented.

Private sector rental prices in Noord Holland increased the most by almost 13 percent, largely due to rent increases in Amsterdam. "The overheating housing market in Amsterdam therefore also applies to the (private sector) rental market", according to the report. Utrecht also saw rent increases well above the other provinces.

There is an urgent need for more rental homes in the private sector, according to NVM and VGM. In the large cities especially there is an acute shortage in the so-called mid-market rental housing. According to NVM an VGM, the government, municipalities, housing associations and market participants need to make better agreements on how to better match supply of rental housing in the private sector to the demand.