The Tweede Kamer will discuss a bill for affordable rent quickly

The Tweede Kamer is going to handle the Affordable Rent bill quickly. A majority of the commission that are responsible for this subject decided to bring it to the agenda in a closed meeting. VVD and BBB wanted to declare the bill as controversial but the motion was thrown out. The outgoing Cabinet had insisted on a quick treatment, because the law will result in a significant reduction in rents for hundreds of thousands of homes.

Housing Minister Hugo de Jonge had admitted his bill to the Tweede Kamer on Tuesday. If it is also dealt with quickly by the Tweede Kamer, the intended effective date of the 1st of July may still be achieved. Otherwise, it will start on the 1st of January 2025. The core of the new law is that the points system is expanded so that legal requirements will apply to more homes in the current private sector. The rent may not exceed 1,100 euros per month if the home does not meet these requirements.

The rent would go down by an average of 200 euros in over 300,000 homes with new rent contracts. The hope is that more affordable housing will be added in the long term so that people with an average income have a better chance of finding an affordable home. Estimates say that over 40 percent of middle-sector renters are paying more than what is reasonable, especially in the big cities. Moreover, due to the housing shortage, rents often increase sharply when new tenants move in; rents rise on average by more than 10 percent (160 euros per month).

The new law will be mandatory, so private landlords must adapt their homes to the requirements or reduce the rent. The municipalities will be enforcing the law and can take the rental permit away. If the law is approved, the regulation will start immediately. However, a lower rent will only be enforced when new inhabitants come in.

De Jonge changed his bill after criticism from the Council of State. The concern was that private landlords or investors would drop out because private rental and new construction would no longer be profitable. There are loud protests concerning this from the real estate sector, which is why VVD and BBB wanted to wait with the bill. However, the other parties insisted on quickly handling the bill because it could help many tenants. The minister sees the resistance from real estate companies as a signal that they expect their significant profits to decline.