New tenants in the private sector in Amsterdam are paying an average monthly rent of over €2,200 for a 100 square metre property, according to research by housing platform Pararius.

The same property in Rotterdam would cost €1,350 per month, and €1,250 in Eindhoven, the Pararius figures show.

The cost of rental in the private housing sector increased by 6.2% in the first quarter of this year, compared to the first quarter of 2015, bringing the average price per square metre per month from €12.61 to €13.38.

The increase is most pronounced in Amsterdam, where the average price per m2 per month is now €22.34, an 11.5% increase since last year.

Pararius CEO Jasper De Groot says the increase is partly due to a lack of available private sector houses. Only one in 20 houses in the Netherlands is in the so-called free sector. Of the remaining 19, eight are rent controlled social housing and 11 are owner occupied.

Disadvantages for tenants

The problem is compounded by a Supreme Court decision at the end of last year that ruled that brokers and agents can only ask commission from landlords in the negotiation process.

‘Landlords are now being confronted with these broker’s fees, and adding them to the rent,’ De Groot told DutchNews.nl. ‘This is what we hear from all of our agents in the Netherlands. The winner is the landlord and not the tenant.’

The exact role that that broker fees play in rent hikes is unclear, although De Groot insists that it is a significant factor.

Agent

‘Every expat in the Netherlands needs to hire their own agent who acts on their behalf,’ he said. ‘It will cost them a month’s rent but it’s a wise thing to do. They can negotiate the rent down and make you a solid rental agreement.’

‘It would be better if there were a lot more rental properties in the free sector, but it would also be nice if the government introduced better laws to make owners more flexible in renting out their properties,’ De Groot told DutchNews.nl.