Housing Minister considering measures to stop mass sell-off of rental properties

Housing Minister Mona Keijzer said it is “worrying” that more property investors are selling off their rental housing, and she is considering measures to address the issue. “In times of a housing shortage, the supply of affordable rental properties must grow,” the BBB politician said.

“Due to the sales, the total stock of private rental properties has now fallen slightly.” Figures from the Kadaster, the national land registry, show that landlords put more than 50,000 rental properties up for sale last year, up from just over 30,000 a year earlier.

The number of rental properties sold has been increasing since 2021. The properties are often sold to the current tenants, who can then purchase a home relatively cheaply. New construction also leads to an increase in rental properties.

Keijzer wants to enact measures to offer private landlords “more flexibility,” and will present her plan at the end of March to politicians in the Tweede Kamer, the lower house of Parliament. “Affordable rent must be profitable,” the minister said.

The increase in home sales is often associated with the affordable rent law crafted by Keijzer’s predecessor, Hugo de Jonge. This created a new tier of price-capped rental housing in between social housing and apartments leased on the full free market.

BBB party members Henk Vermeer and Marieke Wijen-Nass urged Keijzer to act quickly. “Lower supply means higher rents and longer waiting lists, which will only escalate the housing crisis.” The MPs see the higher tax on real estate profits and stricter regulations as the main causes. Not only tenants but also landlords deserve more protection, they believe.

Governing coalition partner NSC also sees positive aspects in the figures from the Kadaster. “The fact that middle-income tenants can now buy affordably is great news,” said MP Merlien Welzijn. However, real estate should not be seen as a “fiscal money grab,” she warned. “Good landlords should be able to earn a decent living and rents should be affordable.”

Landlords do want the Cabinet to intervene directly, and preserve the availability of rental properties for the middle class households in the Netherlands, said private landlord association Vastgoed Belang. They believe investors sold tens of thousands of rental properties last year at an average sales price below 400,000 euros.

Based on this data, and practical experience, the organization concluded that 90 percent of the rental properties sold were subject to regulated rental pricing. Residences with a price tag below 400,000 euros almost exclusively exist in the social housing level or the new mid-range with rent restrictions, according to the trade association.

“The figures from the Kadaster show once again that the investment climate for Dutch rental properties has deteriorated enormously,” said major housing investor Heimstaden. The foreign organization, which offers almost 13,000 rental properties in the Netherlands, particularly criticized the Affordable Rent Act introduced last year.

“Reversing the law would be the best option, but in the current political climate that does not seem a realistic option. It is therefore crucial that flanking fiscal repairs are made as soon as possible.”

Among the critics of last year’s law is Klaas Knot, the president of De Nederlandsche Bank, the country’s central bank. The government would be wise to reverse course, he said. This comment caused a great deal of political turmoil.

Heimstaden thinks that, considering the political reality, it is smarter to consider other options, especially in light of debate about the future of the capital gains and savings tax on assets in Box 3 of individuals’ annual income tax returns. “In recent weeks there has rightly been much attention for the need to repair Box 3, but other measures are also needed to make investing in Dutch rental properties somewhat competitive again from a European perspective,” the organization said.

“Think in particular of normalizing the rigid interest deduction limitation in corporate tax and reducing the transfer tax to 6 percent or lower.”

Tenants, housing corporations, and municipalities, on the other hand, urged against adjusting the Affordable Rent Act. The Woonbond, Aedes, and VNG warned that amendments now could have “major negative consequences” for tenants. “Good governance means maintaining legislation that was introduced last year for good reasons,” they state. The parties stress that landlords mainly need clear rules and a stable investment climate. Changes to the rental law would also not be in their interest.

“If adjustments are needed to make investments in mid-range rent attractive to private landlords, it makes more sense to reduce the box 3 tax than to adjust the Affordable Rent Act,” said the tenants, municipalities, and corporations. “That has a much greater impact on the revenue model of these landlords and, moreover, it does not saddle tenants with unreasonably high rents.” They point out that private landlords started selling homes in 2021, “well before the law came into effect in 2024.”