Government intervention has major impact on housing rent rises


This year’s rent increase round was the most modest since 1960, with social housing tenants paying just 0.3% more, according to new figures from national statistics office CBS.

In the non-rent controlled sector, rents for existing and new contracts rose by an average of 2.2%, the CBS said.

The limited rise follows a government decision to freeze social housing rents and to limit free sector rent rises to inflation plus 1%, or 2.4% in total, for the next three years. The measure was introduced in an effort to offset the impact of coronavirus on spending power.

Earlier research has shown that the price of non-rent controlled property (more than €752 a month) is actually going down for new tenants. In Amsterdam, for example, rents for new tenants have dropped for four consecutive quarters and are now down nearly 7% on a year ago.

Nevertheless, new tenants in the capital are still paying €21.53 per square metre, or an average of €1,292 for a 60 square metre flat.

On average, rents in new contracts were up 7.2% in July, compared with 9.5% in 2020, the CBS said.

Housing rents in the Netherlands traditionally go up every July.

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