Friday 29 May 2020

Coalition parties call for much higher social housing rents for big earners

Photo: Depositphotos.com

The four coalition parties want to take action to get high earners out of social housing by putting rents up to the maximum in one go, the AD said on Wednesday.

Currently landlords are allowed to give high earners a rent increase of not more than 5.4% a year but the coalition says landlords should be allowed to whack the rent up to the maximum of €710 in one go.

The maximum rent in the rent-controlled sector is €710 and rents are assessed on a point system depending on factors such as location, number of rooms and facilities. Rent-controlled property is restricted to people with an income of less than €41,000.

‘It should not be the case that people who are entitled to a rent-controlled property are on a waiting list for years while people with a far too high income are keeping these houses occupied,’ Christian Democrat MP Erik Ronnes told the paper.

At the same time, people whose income drops unexpectedly could be given a rent cut, the MPs say.

The MPs have asked home affairs minister Kajsa Ollongren to discuss the issue with housing corporations, which are responsible for most of the rent-controlled property in the Netherlands.

Mid-market rentals

Research by ING last year showed that the higher rent rises for households with an income of over €41,000 a year had a limited effect. One reason for this is the lack of rental property with a rent of €710 to €1,000 a month.

Earlier this year, Ollongren published plans to boost the amount of affordable housing in the Netherlands. She says the Netherlands needs 75,000 sustainable homes a year to keep up with demand.

As well as building new homes, old office blocks and other redundant buildings will be reused, to offset the shortage of inner city building ground, the minister said.

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