Minister Mona Keijzer of Housing and Spatial Planning is taking measures to preserve mid-rent housing and to prevent landlords from selling their properties. There are four measures primarily aimed at properties from private landlords that can have a quick effect. In the housing valuation system (WWS), the WOZ value will weigh more heavily in the rent price for new contracts. For small monuments, a higher rent can be charged for new contracts, and the lack of outdoor space will no longer incur penalties. Additionally, all students will have the opportunity to sign a temporary rental contract. The proposals are outlined in a letter that the minister sent to the House of Representatives on Thursday.

The measures follow monitoring of the effects of recent rental regulations and tax changes on the rental market. On July 1, 2024, both the Affordable Rent Act and the Fixed Rental Contracts Act came into effect. Data from the Cadastre shows that in 2024 more than 30,000 rental homes have been sold off. Additionally, new homes have been added, for example, through new construction. In the end, the private rental market shrank by 413 homes in 2024, while the supply should be growing given the persistently high demand for affordable rental homes. Especially private landlords in cities are selling their houses because mid-rent has become less profitable for them, and selling the property at market price yields more. This increases the significant shortage of affordable rental homes in the Netherlands.

Minister Mona Keijzer: “The aim of these measures is to ensure that the number of mid-rent homes starts to grow again. It is important that tenants pay a fair price and that landlords have sufficient return and flexibility to continue renting their property instead of selling it. To prevent exorbitant prices, efforts have rightly been made in recent years to protect tenants. Combined with tax changes, this has led to the fact that renting homes, especially for private landlords in large cities, is no longer viable. With these measures, I want to make mid-rent more attractive for landlords, so they do not sell their properties.”

Three of the four measures fall within the WWS, the points system used to value homes to arrive at a fair rental price.

For the current WOZ cap, which limits the counting of a high WOZ value in the rent price in popular locations, a surcharge will apply. This allows landlords to charge the maximum rent at the original point total for a new tenant, without these homes exceeding the mid-rent threshold into the free sector. Currently, rental homes revert to 186 points and a maximum rent of €1184.82, the upper limit of mid-rent, if the points from the WOZ value make up more than 33% of the total points of the property. This does not align with the high market value of many homes in the Randstad. By weighing the WOZ value more heavily, the difference for landlords between the income from renting and selling at market price decreases, making selling off less attractive. For example, with 200 points, a rent of €1277.85 could be charged. This gives landlords more room to continue renting, and new tenants will pay a price that better fits the desirable location where they will live, without losing rent price protection. If the WOZ cap were completely lifted, a house with 200 points would quickly cost double per month.

Small national monuments will soon be valued more heavily in the WWS. This can mean a monthly difference of between €40 and €70 for new contracts, depending on the size and WOZ value of the property. Small national monuments in cities are popular, but this is not well reflected in the maximum rent through the current WWS. The limited area of these homes also results in a limited number of points from the WOZ value.

In the WWS, the 5 penalty points for the lack of outdoor space will also be removed. In many urban areas, outdoor space is difficult to realize due to limited space. Additionally, plus points are already awarded for houses that do have outdoor space. That will remain so. Removing the penalties will lead to approximately €33 more rent per month for new rental contracts.

Landlords can only raise the maximum rent to the new maximum if a new rental contract is signed. For existing tenants, the rent can only be increased annually by the allowed legal percentage. Therefore, for these tenants, the rent cannot suddenly be raised to the new maximum rent.

For all students, it should again be possible to sign a temporary rental contract. Currently, only students moving to the city where they will study can receive a temporary contract. Temporary contracts offer landlords more flexibility and reduce the chance that properties will be sold off. Additionally, students already living in the city will have a better chance of getting a room. Nationwide, about half of student housing is in the hands of private landlords. Since the introduction of the Fixed Rental Contracts Act, the rental contract for an indefinite period has become the norm, with the exception of a few specific groups.

In addition to rental regulations, taxation also plays a role in landlords choices to sell off properties. The Secretary of State for Taxation, the Tax and Customs Administration, sent a letter to Parliament on April 2 regarding possible adjustments to the box 3 rebuttal regulation. Other measures to make property rental more tax attractive are already known. From January 1, 2026, the transfer tax for rental homes will decrease to 8%. Furthermore, the government wants to implement the Real Yield Box 3 Act starting in 2028, which will impose a capital gains tax on real estate. This means that landlords will only have to pay tax on the increase in value of the property when it is sold.

More time is needed to monitor the structural effects of rental regulations on the rental market. The minister will continue to inform Parliament regularly about this. A full evaluation of the Affordable Rent Act will follow in 2027.