Rental market in motion: Fewer regulations, higher rents?

The Dutch government plans to adjust the rules around rental prices. Housing minister Elanor Boekholt-O’Sullivan wants to relax parts of the Wet betaalbare huur. This law was introduced in 2024 to curb high rents, but it also had an unintended effect: many private landlords sold their properties because renting became less profitable. As a result, the number of rental homes decreased.

Rental market in motion: Fewer regulations, higher rents?

The Dutch government plans to adjust the rules around rental prices. Housing minister Elanor Boekholt-O’Sullivan wants to relax parts of the Wet betaalbare huur. This law was introduced in 2024 to curb high rents, but it also had an unintended effect: many private landlords sold their properties because renting became less profitable. As a result, the number of rental homes decreased.

To address this issue, the government is introducing new measures to make renting more attractive again. One key change is the introduction of a WOZ-based surcharge, meaning the property’s WOZ value will weigh more heavily in determining rent levels. This could lead to higher rents, especially in popular neighborhoods. In addition, penalty points for homes without outdoor space—such as a balcony or garden—will be removed, so these properties will no longer be cheaper. Landlords of designated national monuments will also be allowed to charge higher rents.

For newly built homes, landlords will be given more room to recover their costs. They will be allowed to apply a 10% rent surcharge for a longer period. Changes are also planned regarding rental contracts: although temporary contracts have largely been abolished, the government wants to allow all students to rent on a temporary basis again. This is intended to prevent landlords from withdrawing student housing from the market.

Alongside these changes, the government is also introducing fiscal measures. The property transfer tax for private landlords will be reduced, and a system is being developed in which tax is levied on the actual return from real estate. Housing corporations will also receive financial support through tax reductions.

The impact of these relaxations could be significant. Tens of thousands of tenants may be affected. The WOZ-related measures alone are expected to impact around 25,000 homes, while changes concerning national monuments could affect about 10,000 tenants. Critics fear that tenants will end up paying more, while landlords benefit. The government argues, however, that without these measures, the supply of rental housing would decline even further.

According to the government, these reforms will not solve the housing shortage. Therefore, efforts are also focused on the future, particularly on accelerating housing construction. There is a strong push for prefab housing, which is produced in factories. The goal is that within four years, half of all new homes will be built this way. To make this possible, the government plans to harmonize municipal regulations and speed up permit procedures, supported by a budget of €287 million. In addition, the government aims to make better use of existing buildings. By splitting homes, adding extra floors, or converting vacant properties, thousands of additional homes could be created each year—although these plans still need approval from the Tweede Kamer.