Family spending institute Nibud has said the government does not need to freeze social housing rents for two years as planned, because wages are rising more sharply than the cost to tenants.

The agency told the Financieele Dagblad on Monday that the freeze will only give a “small boost” to tenants. For example, a single person living on welfare benefits with monthly rent of €636 will only be €10 a month better off if rents are frozen.

A Nibud researcher said that while the freeze “might look good on paper”, the continual changing of strategy when it comes to social housing rents is causing more uncertainty for tenants.

In December, the government said social housing rents would rise by a maximum of 4.5% this year, but then earlier this year MPs voted for a two-year freeze.

At the same time, wages are rising by an average of 5.2%, which means social security benefits will go up by a similar amount. Low-income households are also entitled to housing benefit, which will rise as well.

Housing corporations have slammed the planned freeze, saying it will hit them hard financially, delaying planned projects and energy efficiency work.

They have told housing minister Mona Keijzer they will start legal action against the ministry if the freeze is not reversed by Wednesday.

That, however, is unlikely to happen, given Keijzer has pledged to come up with plans to implement the freeze and partially compensate housing corporations by the end of June.