Tenants & landlords dismayed by Dutch central bank remarks on affordable rent law

De Woonbond, which is the Dutch housing association, has said that they do not understand the argument made by Klaas Knot, who is the president of De Nederlandsche Bank (DNB), to reverse the recently implemented affordable rent law. According to the association, which sticks up for the interests of tenants and people searching for homes, regulation of rental prices is a necessity.

De Woonbond was hugely supportive of the law of Affordable Rent, which was developed by former minister of housing Hugo de Jonge. The implementation of the law which is primarily intended to prevent landlords from charging excessive prices, "is and remains a success," according to a spokesperson.

Knot’s suggestion that the sharply increased shortage of rental properties is due to the new rent law is nonsense, according to the Woonbond. "Various other factors, such as the increased interest costs and new tax regulations, play a much larger role. The law has only been in effect for a few months and is being implemented in stages," according to the spokesperson.

He added that short-term profit landlords stopping because of the stricter regulations is not a disaster. ”It is good for people who are moving for the first time that these homes that were previously bought by investors for expensive rental, are now flowing back into the owner-occupied sector."

Housing corporations also disagree with Knot’s comments. A spokesperson for Aedes, the association of housing corporations, said. “It is important that tenants are protected against excessively high rent prices.”

Aedes is fully behind the objective of the rental law, said the spokesperson. "We naturally hope that the supply of mid-range rental housing will increase. Corporations want to contribute to this themselves by building more mid-range rental housing. The government can help so that it is interesting for all parties to realize these homes. The minister has also promised to evaluate the law, let's wait and see."