Housing rents in the social sector (with rent up to 752 euros) will be frozen this year due to the coronacrisis. The demissionary cabinet meets the wishes of the House of Representatives.
It means that the rents of these homes may not be increased by 1 July. How the Cabinet is going to pay for that is still being sorted out.
Last week the Chamber adopted a motion from the SP together with GroenLinks and PvdA. The motion was unexpectedly supported by the VVD, which was against all previous proposals. The CDA called this opportunistic right before the elections, because the VVD was always opposed.
CDA, D66 and ChristenUnie do not want housing corporations to pay this reduced income. The parties propose to get the money from the investment subsidies set aside for companies.
Christian Union member Dik-Faber: “We have to make sure that housing corporations do not pay for this. They need financial manoeuvre to continue to build those much-needed homes.”
does D66 consider it appropriate for the construction sector to get a slap by the measure. Free money does not exist, says the party. “As far as we are concerned, we are using part of the investment discount for large companies, the BIK, to finance this rent freeze.”
“ With a part of BIK you are stimulating construction, catalyst of economic development and employment,” also says the CDA.
The BIK, the Job-related Investment Discount (BIK), is a controversial part of the Tax Plan controversial with the left-wing opposition. Several parties called this a gift for business. The plan just reached a majority of parliament, especially the VVD is a great supporter.
EUR 200 million
Demissionary Minister Ollongren allocates 200 million euros annually to compensate housing corporations and other landlords. Ollongren: “It is important for people that enough new homes are added and that homes are maintained and made sustainable.”
It seems that there is a majority of Members of Parliament to finance this EUR 200 million out of the reserves for BIK.
Political reporter Marleen de Rooy: “As the elections are approaching and the Cabinet is demissionary, the coalition parties are letting go of each other. The VVD turned out to be in favour of freezing the rents just before the elections. Thats what D66, ChristenUnie and CDA wanted for a long time, and they now take the money out of the pot that the VVD is so sweet. You have to see this in the light of the election campaign.”
Last summer the House adopted a rare motion of censure against Ollongren, because it did not want to freeze the rents. A majority of the First Chamber wanted to.