Netherlands rental prices leap up 7 percent

The Netherlands again saw an increase in the average rent price during the first half of this year. On average, tenants who moved home paid 10.54 euros per square meter for a rental home in the free sector, 6.9 percent more than last year, according to figures from branch organization for real estate managers VGM NL and the Dutch association of real estate agents NVM, NU.nl reports.

The figures are based on on about 35 thousand free sector rental agreements on an annual basis. This includes only new rental agreements, and not tenants who stayed on in a rented property.

Apartment rental prices in particular saw an increase. According to the associations, this is because many apartments are rented in the big cities, and the housing supply there is falling behind. Over three quarters of apartment rentals happen in the large Dutch cities. As can be expected, Amsterdam's rental prices are the highest. There you pay an average of 18 euros per square meter for a rental property. Utrecht comes second with 12 euros per square meter.

All parts of the Netherlands saw rent increases, except for Friesland. There the average rental price fell by 0.7 percent to just under 8 euros per square meter.

NVM chairman Ger Jaarsma hopes that the new cabinet will tackle the overheating housing market. "Compared to other countries, the Netherlands has lot of social housing, but very few free sector rentals. That while this segment is becoming increasingly important, for example through the rise of freelancers who can not or do not want to buy their own home. In addition, there is also a shortage of affordable housing for a large group of people", he said, according to the newspaper. "The free rental sector offers a solution, but the offer is far too small and the the large demand drives prices higher. Much more rental housing is needed. It is very important that the investment in the rental market gets going."