Renters in the Netherlands will face substantial rent increases next year across all sectors, including mid-level, private, and social housing. The mid-level rental sector is set to experience the highest rise, with maximum increases of up to 7.7%.
Mid-Level Rentals
Since July 1st, regulations have been in place for mid-level rentals. Landlords of properties in this category cannot set rent prices arbitrarily but are allowed to increase rents annually within limits. The maximum increase is linked to collective labor agreement (CAO) wage developments plus 1%. With wages rising by 6.7% this year, mid-level rents can increase by up to 7.7%. For example, a tenant currently paying €1,000 per month may see their rent increase to €1,077 next year.
Private Sector Rentals
In the private rental sector, landlords can set initial rents freely for new contracts. However, for existing tenants, annual rent increases are capped. The maximum allowable increase is tied to either the CAO wage growth or inflation, whichever is lower. This year, with inflation at 4.1%, private sector rents can increase by up to 4.1%. A tenant paying €1,300 per month could therefore face an increase of approximately €53 per month.
Social Housing
Social housing rents are expected to rise as well. The Dutch tenants' association, Woonbond, has expressed concerns about a potential "rent explosion" and advocates for rent increases that align with the inflation rate of 3.1%. However, the Ministry is proposing higher increases. Housing corporations can increase average rents by up to 4.5%, with individual rents allowed to rise by up to 5%. This means a tenant paying €600 per month might see a maximum increase of €30 per month. Woonbond did not sign the recent agreements, with Director Zeno Winkels stating, "It is unfair that tenants have to pay for solving the housing crisis."
Source: NOS News