Dutch landlords sell €14.2 billion in rental homes amid tax and regulatory pressures
In 2024, Dutch landlords sold 37,000 rental homes, valued at 14.2 billion euros, in a trend known as uitponden—selling rental properties once tenants vacate. This marks a significant shift in the housing market, primarily driven by increased tax burdens and tighter regulations, according to research from Brainbay, a subsidiary of the Dutch Real Estate Association (NVM).
The uitponden trend, which saw rental homes sold after tenants leave, has been escalating since 2023 when rental properties began being taxed in box 3, resulting in higher taxes for landlords. Additionally, the regulation of middle-rent properties and the ban on temporary rental contracts, effective from July 1, 2024, has made renting less attractive.
The increase in property sales was reportedly particularly noticeable in the four largest cities—Amsterdam, Rotterdam, The Hague, and Utrecht—along with cities like Maastricht, Breda, Delft, and Haarlem. In fact, the NVM reported that one out of every five homes sold in the last quarter of 2024 was a former rental property. This rise in sales is expected to continue into 2025, with industry experts predicting a further increase in the first quarter of the year.
Rogier Weck, an analyst from Brainbay, explained that the surge in property sales can be attributed to the tax changes. He noted that temporary rental contracts, which have historically been a key tool for landlords, will expire by July 2026, fueling the uitponden trend. He added, “We expect the number of uitponden to continue until that time.”
The trend is expected to intensify, with projections indicating 10,000 to 12,000 homes being sold in the first quarter of 2025 alone. This uptick comes as landlords choose to sell their properties as part of a shift in investment strategy, often redirecting their capital into international real estate markets, such as in Spain and Portugal, or the stock market.
A major reason for this shift, according to experts, is the box 3 tax, which taxes rental property income based on a fictitious return, rather than actual profits. While the Dutch government has plans to adjust this tax to reflect real returns by 2028, this has done little to alleviate the concerns of landlords. Additionally, the ban on temporary contracts has repoertedly added further uncertainty, particularly as landlords lose the ability to re-rent properties for short periods, potentially offsetting losses from vacancies.
For homebuyers, the surge in uitponden presents a potential opportunity, particularly for first-time buyers looking for smaller, more affordable properties. According to the NVM, 62 percent of the buyers of former rental properties were first-time buyers, compared to just 43 percent of buyers for regular homes. Smaller, less expensive homes, which make up much of the uitponden market, are often more in line with the needs of younger, single buyers.
However, this is not without its downsides. Renters, particularly those whose leases are expiring, are finding it increasingly difficult to secure new rental homes as the market shrinks. With more landlords selling properties, renters are often left searching for housing with limited options.
Furthermore, renters who might have hoped to purchase a former rental home may find that they are unable to afford it. For example, a rental home in Deventer, which was recently sold for 350,000 euros, would require an annual income of at least 74,000 euros to afford the mortgage—a figure far beyond the means of many renters who are simply seeking to continue renting.
This allegedly creates a growing divide between renters and potential homebuyers, as those with higher incomes and financial support can benefit from the influx of uitponden properties, while those who cannot afford to buy are left struggling in a tightening rental market.
The sale of former rental homes has also reportedly impacted overall housing prices. The NVM reported that the average price of homes sold in 2024 was 473,000 euros, a slight dip from the previous quarter. However, this decrease is largely attributed to the large number of smaller, less expensive uitponden homes entering the market. Without these sales, the average price of homes would have been closer to 482,000 euros.
