Landlords may increase social housing rent by up to 5.8 percent from July

People living in social housing will pay up to 5.8 percent more in rent starting on July 1, the Ministry of the Interior reported on Friday. That is equal to the increase projected in September.

Current developments in wage increases is the key factor determining the percentage in which social housing rental prices may be increased. The 5.8 percent rate of increase is therefore equivalent to the average wage increase from December 2022 to December 2023, the ministry wrote, citing data from Statistics Netherlands.

Social housing corporations may implement an increase by a maximum of 5.3 percent. People who rent from a housing corporation could thus see their income rise more on average than their rent. The ministry stated the reason for the slightly lower maximum rent increase is that it was part of the deal the Cabinet made about keeping rents affordable.

In the private sector, rental prices may increase by a maximum of 5.5 percent from January. In the case of free market rental homes, the increase is determined on the basis of either inflation, or the development of collectively negotiated wage agreements.

The lower of the two figures is taken as a starting point. This time, it is annual inflation calculated at 4.5 percent. Landlords may add another percentage point to that rate of increase.