Aldermen call for rent regulation to keep cities affordable for middle-incomes
Just pass the law that allows rent regulation in the free sector, housing aldermen Dennis de Vries of Utrecht and Reinier van Dantzig of Amsterdam told Trouw ahead of parliament’s debate about outgoing Housing Minister Hugo de Jonge’s bill. Rent regulation is the only way to keep cities affordable for people with mid-level incomes, they believe. “If you want to do something about social security, you cannot ignore this law.” And that sentiment is shared by most big cities, according to the newspaper.
Social housing rents are regulated based on a points system - landlords can’t charge more than a home is worth. But that is not the case in the private sector. “1,935 euros for 33 square meters,” De Vries said about private sector rents in Utrecht. Amsterdam is even worse, according to Van Dantzig: “2,200 or 2,300 euros for a refined chicken coop.”
As a result, the only people who can live in the big cities are those poor enough to qualify for social housing and the rich. “Families who earn too much for social housing and cannot afford to buy a home are excluded. Just like police officers, teachers, all the people you want to tie to the city,” Van Dantzig said. “You get a city with rich and poor residents and nothing in between. That is disastrous for the urban fabric.”
Private investors - who own a large proportion of private sector rentals - complain that regulation will make renting out their properties unprofitable. They threaten to sell those homes, removing them from the rental market. The Amsterdam and Utrecht aldermen aren’t too worried about that. “These investors have achieved exceptionally good returns for years. They could have foreseen that it wouldn’t last forever. Renting in this part of the market remains attractive, with almost the security of a government bond. Because these homes will remain popular for decades to come. And if they sell their property, they will earn a lot of money given the current house prices,” Van Dantzig said.
Rental properties that get sold come within reach for first-time buyers. Those new residents are likely wealthier than the former renters, critics say, because buying a house requires a higher income than renting one. “That could be the case,” De Vries said. “This law does not solve everything. It is only one piece of the puzzle. But without this piece, the puzzle doesn’t work.”
The aldermen see no problem with the government interfering in the housing market. “Housing is not necessarily a revenue model. The basic question is: what is the government for? For education for care, yes, but housing is also a basic need. That is even stated in the Constitution: sufficient housing is a concern for the government,” De Vries said. “This is about social security, about families who should be able to live in the city. If you attach importance to that, you must deliver.”
Whether De Jonge’s bill will receive majority support in parliament remains to be seen. The VVD is against it, and so is the BBB. The position of the PVV and NSC, the other two parties currently negotiating to form the next Dutch government, is unclear.
