Afforable Rent Act

Unbelievably, despite fierce and legitimate resistance from the industry and criticism from various experts, including the Council of State, the Affordable Rent Act was passed by both the Upper and Lower Houses of the Dutch Parliament and entered into force on July 1. This gives everyone very little time to prepare for applying it correctly, while the legal monstrosity still contains many ambiguities and even impossibilities. Instead of diving into all the issues, let’s focus on a few of the consequences and – more importantly – opportunities of this act. It’s impossible to cover all the changes in this blog, but we’ll discuss the most important ones here.

Main points of the Affordable Rent Act

Implementation of this act has created a third category of properties: mid-segment rentals. The maximum permitted basic rent is decided via a residential property valuation points system (WWS). From the effective date of the act, properties can be divided into the following categories:

Social housing up to and including 143 points (2024)
Mid-segment rentals 144 points up to and including 186 points (2024)
Deregulated sector 187 points and higher (2024)

The WWS is now binding. Previously, tenants could enforce it only by applying to the Rent Assessment Committee. As of 1 July, municipalities can enforce this system and even impose high penalties if a landlord rents a property in the social housing or mid-segment rental sector at an excessively high rent.

Shared rental properties

When letting a property to more than two people who don’t share a permanent communal household, the rent must be determined using the points system for non-self-contained residential properties. This also applies to current tenancy agreements, so claims that the act only applies to new tenancies are misleading.

Rent increases

The government sets the maximum rent increases for all three sectors. Each sector has slightly different methods and maximum rents.

Listed buildings

Under the old points system, listed buildings were automatically awarded an additional 50 points due to lower energy labels and higher maintenance costs. From 1 July 2024, no extra points are awarded. Instead, a 35% surcharge is added to the rent. Consequently, some listed buildings will move from the deregulated sector into the social housing or mid-segment rental sector.

Monitoring

The new law will be reviewed every three months to check whether the stock of mid-segment rentals remains stable. After a year, it will undergo a thorough evaluation. Mona Keijzer, the new Minister for Housing, strongly opposes this law, raising questions about its longevity or possible amendments.

What do you need to do now?

Current tenancy agreements will generally remain unchanged unless the property comes under the transitional law* or has been let to more than two people sharing the property.

For properties let after July 1 2024, the Affordable Rent Act applies in full. Steps you need to follow (together with an expert) include:

Determine the number of points of a property on huurcommissie.nl.
If the total is 187 points or higher, you can let the property at market rent without a maximum rent.
If the total is below 187 points, the property falls under social housing or mid-segment rental, and the maximum basic rent is determined using the “Maximale huurprijsgrenzen voor zelfstandige woningen” table.

This act imposes additional restrictions but also offers opportunities, such as adjusted options for temporary rentals or letting properties profitably in the mid-segment rental sector. The key is to obtain customized advice — which is exactly what we provide. We have been advising clients for over 25 years, including on this new law.

*The transitional law is complex and potentially conflicts with the ban on retroactive legislation. Properties with more than 143 points do not fall under the transitional law, and the Affordable Rent Act only applies when tenants change. Our offices can advise on the transitional law and all aspects of the Affordable Rent Act.

Geschreven door:

Tomas Lim | t.lim@interhouse.nl

Tomas has been a key member of the Interhouse team for many years now. He started out as a rental agent at Interhouse Sassenheim more than fifteen years ago. In the last few years there he was office manager and in this capacity came across many problems experienced by landlords. Since 2015 Tomas has been attached to Interhouse Nederland, the head office for all the Interhouse offices. In 2024 he is partner by Interhouse Nederland. He is responsible for the (continued) development of the franchise formulas and provides support to all the offices throughout the Netherlands. His practical experience and the fact that he has handled all the problems encountered by landlords in the various regions serve to make him one of the best-informed individuals in the industry. His practical knowledge and legal background mean that he is especially valuable to the Interhouse group and its business relations. Add to that his professional photography skills, as well as a feel for and knowledge of (online) marketing, and you have a clear idea of his motivation and experience.

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