MPs back expanding rent controls, now it is up to the senate

By Markus Jansen Apr 26, 2024

A large majority of MPs have voted in favour of expanding rent controls in the Netherlands to cover more property which, according to housing minister Hugo de Jonge, should see 300,000 homes becoming cheaper to rent over the years.

The VVD, BBB, JA21, Forum voor Democratie and fundamentalist Protestant SGP voted against the measure, arguing that landlords will sell off their smaller properties and that the amount of available rental housing will go down. As expected, the far-right PVV voted in favour of the measure.

The legislation will hike the current maximum rent in the rent-controlled sector from €879 per month to €1,123 – based on the number of points a property is worth – and could come into effect this summer if it passes in the senate. That, commentators say, is now likely to happen.

At the moment landlords have free choice in deciding the rent of property which is calculated to be worth more than 142 points in the regulatory system. Homes with fewer points are currently classed as social housing with a maximum price of €879 per month. 

The new legislation will increase the rent control limit to 186 points. Ministry officials estimate the rent of some 300,000 homes will go down by an average of €190 when a new tenant moves in, and that 113,000 additional homes will become rent-controlled.

The changes should benefit international workers, particularly in the bigger cities, where landlords often charge high rents for tiny apartments, although the new rules will only apply to new tenancies.

According to the Parool, Amsterdam city officials estimate just 25% of the privately held rental property in the capital will be worth more than 186 points. Currently, some 50% of the 150,000 homes owned by private landlords in Amsterdam are rented out for more than €1,100.

Experts suggest that apartments of around 40 square metres which are currently rented out for at least €1,500 are likely to fall under rent controls. 

They also say the legislation will make it harder for groups of at least three adults to share a home on a single contract – a situation that is already the case in Amsterdam. Instead, each β€œroom” in a shared house will have its own rental contract, which will also fall under the points system.

The legislation also includes changes to the points system, so landlords who invest in good energy efficiency measures will be able to charge more rent. 

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