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.