NOS News•Thursday, 18:18
The cabinet will take a tougher approach to extortionate prices for rented houses of up to approximately EUR 1000. Rent protection now only applies to social housing up to about 760 euros, but Minister De Jonge for Housing and Spatial Planning is going to raise this limit, he announced in a debate in the House of Representatives today.
In May, the minister came up with a plan to intervene in the free market for the mid-market rent. The current housing shortage leads to extremely high rents that are no longer in proportion to the quality and size of the house. De Jonge believes that people with a middle income “get stuck” because they earn too much for social housing and have to pay sky-high prices in the free market.
In May, the minister was still thinking of rent protection between 1000 and 1250 euros. In recent months, this led to protests from some project developers, who wanted to temporarily stop their plans for the construction of rental homes because of this lack of clarity about the exact amount. They were too unsure whether construction projects would yield enough money.
De Jonge understands this uncertainty and therefore already mentions the limit of 1000 euros. Above that, landlords can decide for themselves how much they ask for their home. “The investors have asked for certainty and that is right,” said the minister. He also emphasizes that these are also uncertain times for project developers because of the rapidly rising prices of construction materials, higher interest rates and inflation.
De Jonge remains convinced that the government must intervene in part of the free market. “It affects the right to property, but on the other hand there is the right to housing. There are many reasons to protect tenants.”
In November he will come up with a detailed plan and the exact amount of the rent protection will be announced.