MPs have decided to extend limits on rent increases in the non-rent-controlled housing sector for the next three years.

Measures brought in to limit rises in the “free” sector were due to expire at the end of this year. Now MPs have voted to extend the provisions up to 2027 which means rents will continue to rise by either the average pay increase or inflation – whichever is lower – plus 1%. 

Housing minister Hugo de Jonge had planned to take average pay rises as the standard, but a majority of MPs voted in favour of a GL-PvdA proposal to retain the current situation. 

The rent payable for social housing, which costs below €879 a month, will rise by a maximum 5.8% this year. In the non-rent controlled sector, the maximum rise is 5.5%. 

The government is also planning to extend rent controls to cover homes that are “worth” up to €1,100 in the modernised points system in an effort to boost the supply of affordable property.