Real estate agents express concern for significant drop in rental home supply

Real estate agents and property managers are concerned about the developments in the rental sector. The number of rental transactions has dropped by almost 20 percent in the free sector and the middle-rent sector in the first three months of the year. This is partly due to all the regulatory measures that the government has implemented, a quarterly statement about the rental home market from the real estate association NVM and property management organization VGM NL stated.

The organizations are seeing that many landlords are putting the homes up for sale and pulling back from the market. Because of this, the average rental price rose by almost 13 percent in a years time to just under 18 euros per square meter, according to their calculations. These numbers are similar to data that recently came from the rental platform Pararius.

“The supply is dropping rapidly, the prices are going through the roof, and NVM real estate agents are selling more (former) rental homes than they are renting,” said Lana Gerssen, chair of the NVM working group Wonen. “At the same time there are proposals on the table in The Hague to freeze rents while also adapting the Affordable Rent Act,” she continued.

According to Gerssen, the rental homes market will benefit from stability and clarity in the law. She thinks this would also offer some perspective to landlords and tenants. “We are calling on the minister to open discussions with all involved parties, pool the resources, and develop some structural solutions for the rental home market.”

VGM NL chairman Ronald de Nas agrees with Gerssen’s comments. “The varying policies, like the rent freeze in the social sector and changes in the WWS point count cause unrest with tenants and investors and lead to an unattractive investing climate. Consistent long-term policy is necessary to alleviate problems in the rental housing market and, above all, to work together, government and market, on structural solutions."