Housing minister Mona Keijzer has scrapped controversial plans to freeze social housing rents for two years, following the collapse of the right-wing government.

“Given the position of the Council of State, the political developments and to bring calm back to the social housing market, I have decided not to submit the legislation,” Keijzer said in a briefing to MPs.

“That means social housing rents can rise by the legal maximum of 5%,” she said.

Housing corporations had already been preparing to increase rents in July, despite the draft legislation, because of growing doubts that it would win majority support in the senate.

Tenants’ campaign group Woonbond said it was disappointed by the move, which will affect some two million households living in social housing, with a rent below €900 a month.

“The tenant is the victim of coalition political games,” director Zeno Winkels told RTL. “Instead of a rent freeze, they face an enormous rent increase.”