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Mona Keijzer - Credit: Martijn Beekman / Rijksoverheid - License: All Rights Reserved
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Friday, 22 November 2024 - 14:30

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Minister defends 4.5 percent rent increase amid tenant advocacy pushback

Housing Minister Mona Keijzer has rejected calls from tenant advocacy groups to reduce the proposed 4.5 percent rent increase for social housing tenants. The Woonbond, the Netherlands’ largest tenant advocacy group, recently withdrew from negotiations, calling the increase excessive and a burden on renters already grappling with the housing crisis.

Keijzer defended the proposal, stating that the 4.5 percent increase is a compromise. “The original plan was to tie rent increases to wage growth, which would have resulted in a 6 percent hike,” she said before a cabinet meeting. “Social housing rents have risen only modestly over the past decade, and we need funds to invest in housing improvements, including insulation.” Despite the breakdown in negotiations, Keijzer expressed willingness to continue discussions but ruled out offering a better deal to entice the Woonbond back to the table.

The Woonbond, which advocates for millions of renters nationwide, refused to accept the government’s proposal, accusing the cabinet of prioritizing corporate interests over tenant welfare. "We will not allow tenants to bear the cost of the housing crisis," the group said in a statement.

The advocacy group Woonopstand echoed this sentiment, stating that negotiations should not resume unless the government freezes rents and abolishes income-based rent increases. “Huurders (renters) are forced to shoulder the housing crisis, while their voices are ignored,” Woonopstand activists said.

Activists are also demanding the repeal of the controversial landlord levy, which has extracted 14 billion euro from housing corporations since its inception. The levy has been a long-standing point of contention, with critics arguing that the funds should be redirected toward improving housing affordability and addressing maintenance backlogs.

“Renters are treated unfairly compared to homeowners, who benefit from generous subsidies and incentives,” said Woonopstand in its statement. “The government has spent years systematically dismantling the social housing sector, leaving tenants with unaffordable costs and deteriorating living conditions.”

Tenant groups are also demanding greater accountability from housing corporations, which they claim have failed to prioritize tenants' needs. “These corporations spend tenants’ money without their input, often evicting social renters in favor of wealthier tenants who can afford market-rate rents,” activists alleged.

Taxameter, a major supplier of housing infrastructure, added that years of underinvestment have made the current situation unsustainable. "The social housing sector requires billions in funding to recover, but tenants should not bear this burden alone," a representative said.

The crisis has left many tenants facing dire choices. “Hundreds of thousands of households are forced to choose between heating their homes and eating warm meals during the winter,” the Woonbond said.

Tenant advocates have warned that without intervention, housing unaffordability will worsen. Tenants face the highest housing costs in Europe, driven by rising rents, service fees, and stagnant wages.

As tensions rise, some tenant groups have begun organizing for more drastic measures. Woonopstand warned of potential “wildcat rent strikes” in 2025 if the government fails to act.

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