People signing a new contract to rent a home in the non-rent controlled sector are paying an average of 6% more this quarter than they would have done a year ago, according to the latest quarterly analysis by Pararius.

In Zoetermeer and Apeldoorn, for example, rents have soared by more than 20% while in Almere the rise was 19%, Pararius said. By contrast, in popular cities like Amsterdam and The Hague, prices are leveling off.

‘There is a limit to what people can pay and once prices begin to reach that level, the price rises flatten,’ said Pararius director Jasper de Groot.

In particular, the high prices in Amsterdam and its surroundings are driving tenants to Flevoland province, and Almere, De Groot said.

The rise in rent is due to the shortage of properties in the non-rent controlled sector. In the Netherlands homes with a rent of below €710 a month are reserved for people earning no more than €36,798 a year.

‘Some 34% of homes in the Netherlands are rent-controlled, 58% are owner occupied and just 8% are available for free-sector rentals,’ De Groot said. ‘This is, of course, far too few to meet demand.’