Free sector rent increases limited further in deal reached with left-wing opposition: report

The cabinet agreed to adjust its housing plans for 2021 in order to get support from left-wing opposition parties GroenLinks and PvdA. Rent increases in the free sector will be limited to inflation plus 1 percent, 450 million euros will be pushed into making neighborhoods more livable and sustainable, and single people will get easier access to social housing, sources in The Hague told NOS.

Ministers Kasja Ollongren of Home Affairs and Wopke Hoekstra of Finance made these agreements with PvdA leader Lodewijk Asscher and GroenLinks leader Jesse Klaver, in exchange for their parties' support on the housing plans. The Rutte III coalition doesn't have a Senate majority. The two Ministers therefore decided to look for opposition parties in parliament that could increase support for the housing plans and prevent problems in the Senate.

The left-wing parties insisted that the planned free sector rent increase of 2.5 percent plus inflation be lowered. They also wanted investments in tackling vulnerable neighborhoods. And for adjustments to the income limit for social rental housing to be scrapped. They worried that these adjustments would make it incredibly difficult for single people to qualify for social housing.

The Ministers acceded to these demands.

The Council of Ministers will discuss the adjusted housing plans on Friday. The Tweede Kamer, the lower house of Dutch parliament, will debate the housing budget on Monday.