Tenants in the free sector will be better protected against extreme rent increases in 2023. Landlords are then no longer allowed to base the rent on inflation, the overall increase in prices in the Netherlands. This inflation is so high that the cabinet is afraid that tenants in the free sector will be in big trouble.
“We do not want people to be on the street or that they can hardly make ends meet due to too high housing costs,” says Minister De Jonge for Housing and Spatial Planning, who is coming up with an amendment to the Rent Increase Maximization Act.
The rent in the free sector should be based on wage developments in 2023. “The current law does not take sufficient account of times of high inflation. Hence this new system to better protect tenants,” says De Jonge.
In April, the minister already announced that he wants to prevent tenants from being confronted with a very high rent increase next year. At that time, among other things, due to the war in Ukraine, prices were already rising sharply and that trend has continued. In September, inflation even rose to 17.1 percent, a record high since the Second World War.
Plus 1 percent
The new law means that tenants in the free sector must take into account a rent increase of up to 3.3 percent in 2022; that is 2.3 percent inflation plus 1 percent.
The new system will take effect in 2023; then a tenant must take into account the increase based on wage developments plus 1 percent. That addition of 1 percent is already in the law.
In December, the Central Bureau of Statistics announced exactly what this wage trend will be.
Curbing too high rent increases in the free sector applies to homes starting at 763.00 euros per month. According to the ministry, this concerns 648,000 homes.