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Rents soar in big Dutch cities as government squeezes ‘free’ sector

October 13, 2022
Photo: DutchNews.nl
Photo: DutchNews.nl

Rents in the non-rent controlled housing sector in the Netherlands have risen sharply in the five big cities, and properties are being rented out more quickly, according to the latest quarterly report by Pararius.

In Amsterdam, tenants with new contracts are paying 10.3% more than they did a year ago, with rents reaching €25.24 per square metre, or an average of €1,766 for a 70 square metre apartment.

In Utrecht, new contract rents were up 6.5% to €20.33 per square metre – or €1,420 for a 70 square metre flat. In Rotterdam, The Hague and Eindhoven, rents for new contracts now average between €17 and €18 per square metre, Pararius said.

There are sharp regional variations. In Amstelveen and Enschede by the German border, rents were up 13%, while in Gouda and Delft the increase was a minimal 1%.

On average, rental property was available for 34 days before a new tenant signed up. That is down eight days on a year ago.

Controls

The cabinet is planning a raft of measures to increase the regulation of rental property which is not covered by rent controls – in other words, housing with a monthly rent of more than €763 based on a points system including size and facilities.

From next year, buy-to-let properties will be subject to a higher rate of transfer tax and housing minister Hugo de Jonge is also working on plans to add more housing to the rent controlled sector.

Local councils are also being given the right to restrict sales to people who actually intend to live in a property. This has already happened in Amsterdam for new builds and homes worth up to €512,000 and for homes up to €355,000 in certain districts in Rotterdam.

Investors

‘These measures are not great for the non-rent controlled sector and the cabinet would appear to be unwilling to recognise the important role investors have in the housing market,’ Pararius chief executive Jasper de Groot said.

‘Investors are being discouraged from putting money into housing even though the number of non-rent controlled properties has been extremely low for years.’

Currently, 57% of the Dutch housing stock is owner occupied, 33% is rent controlled and just 9% is available for people earning more than €40,000 who wish to rent.

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