The one-time rent reduction in 2023 had only a limited effect on tenants and resulted in less investment capacity for housing corporations to build new homes. The rental income for housing corporations decreased annually by approximately €397 million, and the borrowing capacity fell by €8.3 billion. The 595,000 households whose rent for their corporate housing was reduced to €575.03 per month in 2023 received an average of €24 lower housing costs per month. The effect was mitigated because the housing allowance was also lower. The figures are included in the evaluation of the One-time Rent Reduction Act, which Minister Mona Keijzer of Housing and Spatial Planning sent to the House of Representatives today.

The aim of the One-time Rent Reduction Act was to structurally reduce the housing costs of tenants with a low income (up to 120% of the minimum wage). The evaluation showed that the majority of the rent reduction did not net reach the tenant. The rent was on average €56 lower per month. In practice, tenants kept an average of €24 per month from this, as they also received €32 less per month in housing allowance due to the lower rent. The average rent share (the percentage of income that goes to rent) decreased from 24.3% to 20.8% for households with an income of up to 120% of the minimum wage. The rent reduction only applied to tenants of housing corporations.

Despite the lower annual rental income, housing corporations still had enough room to meet the performance agreements made regarding new construction and sustainability. The abolition of the landlord levy from 2023 was part of the same performance agreements and made the one-time rent reduction financially possible.

The effect of the rent reduction on tenant mobility cannot be determined from the evaluation. This can only be assessed in the long term. A lower rent could mean that tenants are less likely to move to a better-fitting and affordable home.