The government has announced new housing controls to try to ensure homes are more affordable for renters and new buyers.

The maximum price rise that landlords can ask for rental homes in the ‘free’ market has been limited to 2.5% plus inflation. The same kinds of controls on increases are normal in the social housing sector.

Local councils will also have new powers to reserve homes in certain neighbourhoods for first time buyers and those on an average income, by banning professional investors who intend to rent them out. Amsterdam has already announced that newly built homes on its land will have a covenant restricting the possibilities to lease them out.

Home affairs minister Kajsa Ollongren said in a government news release: ‘Everyone has the right to decent, affordable housing and especially in these unsure times, it is extra important to have a roof over your head. So I am working hard on rules to improve the affordability of homes and to combat excesses.’

The new laws, which are currently being drawn up, will also make it easier to extend a temporary rental contract.