Housing rents rose by a record 5.4% on average in July, the highest figure recorded since 1993, national statistics office CBS said on Wednesday. Last year, the average rise was 2%, the CBS said.

The rent increase is decided by the government, based on inflation or the average wage rise plus a top-up. In addition, landlords are free to increase the rent when signing a new tenancy agreement.

The cost of a rent-controlled property – up to €880 per month – rose the most, with an average increase of 5.6%, slightly below the government maximum of 5.8%. Non-rent controlled, or “free sector” properties were 5% more expensive, again below the government maximum of 5.5%.

People living in social housing but earning more than the social housing limit of nearly €48,000 a year faced a higher rise of 5.6%. Landlords can increase their rent with a top up fee, in an effort to encourage them to move to the liberalised sector.

The biggest increase was in Rotterdam, where rents rose by an average of 5.9%, due in part to higher rents for new contracts. In Utrecht, rents rose by 5.8% on average and in Amsterdam 5.2%.

Tenants living in social housing face a hefty increase in 2025 as well, given their rent rises are based on average pay increases. According to broadcaster NOS, the increase could be as much as 6.5%.

Tenants associations have called on the government to intervene, saying a second massive rise would be “out of all proportion” and would contravene pledges made by the new government on alleviating poverty.

From July the Netherlands has had a third category of housing – rent controlled but without income requirements. They have a maximum rent of up to €1,120 a month.