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Rents to rise 2.3%, in line with inflation

Thursday 02 February 2012

Landlords will be able to put up rents 2.3% - in line with inflation - this year, but some tenants will face rises of 7.3%, according to the home affairs ministry.

People living in rent-controlled properties with a household income of more than €43,000 will face an extra rise of 5% on top of the inflationary increase. The top-end basic rent for a rent-controlled property is €644.66 a month.

Parliament still has to approve this measure, which the cabinet hopes will encourage the better off to move into more expensive homes. However, landlords can now anticipate the change by asking the tax office which tenants have household income of above €43,000, home affairs minister Liesbeth Spies said on Thursday.

The tax office will not provide specific information but will let landlords know if the joint income at a given address breaks the limit, the minister said.

© DutchNews.nl


Readers' Comments

the extra 5% increase on people who shouldn't be in rent controlled properties is cowardly. They should be required to move within a year, after all they are technically committing fraud. Out out out! And for that year they should have at least a 25% increase to help them out out out!

By larry | 2 February 2012 4:44 PM

Why not just do the same as you did with the dentists, give us all an even bigger laugh?

By The visitor | 2 February 2012 6:49 PM

Right, so what keep the landlords from asking the question about *every* tenant? After all, there does not seem to be a limit for this. They have nothing to lose if they ask -- but have much to win!

By Robert | 2 February 2012 8:17 PM

The Law of Unintended Consequences suggests that tax fraud will increase so as to keep higher earners' earnings below the limit.

By Fred Bloggs | 2 February 2012 9:11 PM

so larry, if I follow your reasoning I would be FORCED to buy a house right now, in a failing collapsing housing market!
is that smart in the long term - for anyone? including the future economy of the Netherlands? think about it.

By Bill | 3 February 2012 7:06 AM

Social housing should be based on income and need. People who are not low income (€33,614 per year) should pay fair-market rent. People should not stay permanently in social housing irrespective of their future income or needs.

Many people profit financially from social housing, i.e., couples living together where each has social housing and they sublet, parents who no longer have children at home in large houses, and travellers who pay for their travel from subletting. It is a well-known joke about why you meet so many Dutch people travelling relative to the population.

Before the government considers changes to mortgage interest deductions it must address this core problem in social housing that skews housing prices for everyone!

By Quest | 3 February 2012 10:24 AM

Quest, subletting is really a problem and should be tackled.

However, I don't think governmetn should start ascertaining whether Thijs and Corine have grown up and force parents to move to a flat just because Thijs and Corine now live 200km away.

But as a general principle, it would be better if government invested in NEW (not used) homes, preferably in new neighobrhoods (to spur growht and lessen overcrowding of existing cities) like the VINEX plan, and sell them with subsidies so that people can OWN their houses and take better care of them.

By Andre L. | 8 February 2012 6:28 PM

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