More rental homes in private sector despite sell-off prompted by looming rent regulation

The number of homes in the private rental sector has increased by around 67,000 in two years to almost 1.2 million. Statistics Netherlands (CBS) and the Land Registry report this based on figures for the period 2021 to 2023. New construction, transformations of existing buildings, and the division of homes contributed to the increase.

According to CBS, private landlords acquired approximately 78,000 new homes between 2021 and 2023. That amounts to 40 percent of all new homes added to the Dutch housing stock in that period. The purchase of existing homes played a smaller role in the reported period.

There is a wide variety of landlords in the private sector, including private landlords, investors, and pension funds. According to CBS, the group consists of about 432,000 private sector landlords. Almost nine in ten of them are natural persons. The other landlords are companies and what CBS calls “other non-natural persons.” These are often foundations, like housing corporations, associations, and church organizations.

Of the group of private landlords, approximately 377,000 rent out fewer than ten homes. Of these, 302,000 people own only one rental property.

Concerns have been raised about the supply of private rental units decreasing due to Housing Minister Hugo de Jonge’s Affordable Rent Act, which will regulate mid-segment rentals in this sector. De Jonge’s bill is to combat excessively high rents amid the housing shortage. According to the Minister, it will lower the rents of some 300,000 tenants. Many private landlords are selling off their rentals because they will soon no longer be profitable.

CBS's figures show that housing construction compensated for that sell-off in the past two years. But concerns remain, also as fewer construction permits are being issued.