Tenants footing the bill for social rentals that never get built: Woonbond

The construction of social rental homes was far below target in most Dutch municipalities in the past 3.5 years, according to research by the tenants’ association Woondbond. 23 municipalities have not built a single social housing unit in that time. In the meantime, tenants face high rent increases to help pay for new social rentals that never get built, the Woonbond said.

The target is for 30 percent of new homes built in a municipality to be social housing. Between 2020 and July 2024, 85 percent of municipalities did not meet that target in their housing construction. “While new construction is lagging behind, tenants are paying substantial rent increases that housing corporations say the need for new construction,” the Woonbond said.

The construction of social housing units is not subsidized and must be paid for entirely from rental income, the Woonbond said. Last year, social tenants faced a 5.1 percent rent increase - the highest in 30 years. This year, the rent for social housing is set to again rise by up to 5 percent.

“Social housing tenants are now paying to solve the housing crisis. As a result, rents are rising too fast. At the same time, the promised new construction figures are often not achieved,” said Woonbond director Zeno Winkels. “The Minister must ensure that social housing remains affordable and that the social housing sector finally grows again.”

“As a society, we must invest in public housing. This should not be the responsibility of social tenants with modest incomes,” Winkels said. “National politics must prevent a rent explosion and invest in public housing. Also, make sure that municipalities actually plan social housing.”

According to the Woonbond, the rapid implementation of the Strengthening The Control of Public Housing Act, which would oblige municipalities to include at least 30 percent social housing units in their new construction, is absolutely essential for catching up on the backlog in the number of social housing units. “But the bill has been gathering dust in the drawers of Mona Keijzer and the coalition parties for a year now,” the Woonbond said. “In the meantime, too few social housing units are being built year after year and the waiting lists are growing.”