Amsterdam drops price of land to build more rent-controlled apartments

Amsterdam is lowering the price of land for the construction of 1,500 mid-level rent-controlled housing, the college of mayor and aldermen announced on Tuesday. The municipality is willing to lose out on 160 million euros in income on the land in order to remedy the serious shortage of rental housing for people who earn too much to qualify for social housing, but can't afford to buy a house, Het Parool reports.

The municipality hopes that the cheaper land prices will stimulate the construction of housing with a rent between 700 and 970 euros per month. These homes will be rent controlled - for the next 25 years their rent may not increase more than inflation. Tenants who come from social housing will get priority, to improve the flow from social housing to regular housing.

The construction companies in this project will work under strict conditions. According to Housing alderman Laurens Ivens, several market parties already showed interest. He added that this is costing the municipality millions of euros in income."But the municipality is not here to make profit."

Amsterdam believes that many families will make use of these new homes. As well as professionals like lecturers and nurses, who work in the city, but can't afford to live there.