De Jonge sets the rent protection limit at 1,000 euros

Minister Hugo de Jonge (Public Housing and Spatial Planning, CDA) indeed sets the limit of rent protection at 1,000 euros. He confirmed this in a letter to the House of Representatives on Friday afternoon. The new rules will only apply to new leases, and not to sitting tenants. In a committee debate in September, De Jonge already said he was thinking of a limit of 1,000 euros, in order to significantly stretch the regulated rental segment. This currently only covers social housing, with a rent of up to a maximum of 763 euros (at the start of the contract). The new law means that not only social rent, but also so-called mid-term rent will become a protected type of rent. This means that the amount of the rent is subject to rules. Rental homes up to 1,000 euros will fall under the points system: a system that evaluates homes on quality characteristics, such as surface area and sustainability. The rent is then paid based on the number of points. Now the points system goes up to 141 points (which is linked to a rental price of 763 euros); above that, rental properties fall into the free sector and owners are free to pay the rent they ask. De Jonge will stretch the points system to 187 points (1,000 euros rent). Owners are only allowed to choose the rent themselves if a house is awarded more points. According to De Jonge, 80 percent of rental properties will soon fall under the points system. De Jonge therefore opts for more rent regulation – but also for the weakest form of his options. Before the summer , he announced that he wanted to set the regulated rent limit between 1,000 and 1,250 euros. That announcement caused quite a bit of unrest among market parties: the proposal makes it unprofitable to offer rental homes, they argue, so that on balance there will be fewer rental homes. A group of economists shares that concern. Before the summer they presented plans for a thorough reform of the housing market, part of which is to leave the rent entirely to the market – and thus put an end to the regulated rental segment. Also read: A nice rental home is also a lottery ticket With the new law, De Jonge wants to combat extortionate prices on the rental market. The share of ‘expensive rental homes’, with a rent of more than 1,000 euros, has increased considerably in recent years and affordability is under pressure. Currently, 8 percent of rental properties are ‘expensive’. Mostly young people live there. “The current scarcity leads to a rapid increase in rents with all the associated excesses,” says De Jonge. “We have to get rid of that. To accommodate market parties, De Jonge is considering a price surcharge on the points system. This means that the rent for homes may be increased by a percentage that has yet to be determined. The percentage this will be will be announced in November. The new law is due for consultation early next year. A version of this article also appeared in the newspaper of October 15, 2022