Dutch cabinet plans to ease rent controls, allowing rents to rise again
The Dutch government plans to relax rent-control rules introduced in July 2024, a shift that would allow higher rents again amid a continued housing shortage, RTL reports. The proposed changes come as landlords have been selling off properties and the supply of rental housing has fallen.
Housing Minister Elanor Boekholt-O’Sullivan (D66) is outlining the measures in a letter obtained by RTL Nieuws’ political desk, which is scheduled to be sent to the Tweede Kamer. The proposals were already referenced in the coalition agreement but are now being detailed for rapid implementation.
Since the Wet betaalbare huur took effect in July 2024, landlords have been selling rental properties on a large scale, contributing to a decline in the number of available rental homes. The cabinet intends the planned adjustments to counter that trend and encourage investment.
A key change is a so-called surcharge based on the official valuation of a home, or WOZ. Under current rules, the WOZ value of a home can account for a maximum of one-third of the rent calculation. With the proposed adjustment, properties affected by this rule could see maximum rents rise by tens of euros.
Another measure would eliminate penalties currently applied to homes without outdoor space. Those properties now receive deductions in the rent-price system, but the government plans to remove them, allowing landlords to charge higher rents.
The cabinet also wants to allow higher rents for small national monuments, arguing that such properties are often in desirable locations.
For student housing, Boekholt-O’Sullivan proposes a broad exception. Since the rent law took effect, temporary rental contracts have generally been banned, although limited exceptions already exist for some students. The minister says the change has created confusion and wants all students to be eligible for temporary rental contracts again.
Beyond rent regulation, the government is also using tax policy to encourage investment in housing. Transfer tax for private landlords will be reduced from 8 percent to 7 percent. Housing associations will also receive support through a 325 million euro reduction in corporate tax.
