Temporary rental contracts could be scrapped for most people in the Netherlands, thanks to a members’ bill going through parliament.

Since 2016, landlords have been allowed to offer tenants one or two year contracts, in order to make it more appealing to rent out property. But increasing numbers of MPs are concerned that limited-term contracts expose tenants to unscrupulous practices and inflate rental prices.

Henk Nijboer, housing spokesman for the PvdA labour party, is one of the two MPs whose law proposal was debated on Thursday night. ‘In 2016, temporary contracts were offered, with the thought that more rental properties would become available but not that it would become the norm,’ he told Dutch News. ‘But the first has not been proven, and it has become the norm for private landlords.

‘It means that renters are repeatedly put out of their homes after two years and need to look for something new, or pay a sky-high rent increase. They are told: “You can keep it, but it will cost another €200 a month.” This has led to extremely high rents and a lot of insecurity among renters, who have nowhere else to go. We want to better protect renters and change the law back.’

Judging by the parliamentary debate, the bill will probably win a majority when it comes to a vote next month, reports the Volkskrant, although Mark Rutte’s VVD is opposed. His party, and small, right-wing Groep van Haga, fear the change would reduce the rental supply, which may already be drying up due to separate proposals to bring more homes under rent control.

Wybren Van Haga, head of Groep van Haga, said in the debate that both landlords and renters were the ‘victims’ of the current, partially-regulated market. ‘Almost every government intervention, however well-intentioned, leads to a lack of balance in the market,’ he said. ‘In an ideal, capitalist world, the market would just function and there would be enough, and affordable, homes for everyone. There would even be some empty houses, which would mean landlords would not automatically have the upper hand.’

Shortage

Experts agree, however, that the Dutch housing market is in far from any ideal state. Documents to support the members’ bill say that while residents have a constitutional right to affordable housing, The Netherlands has a shortage of some 300,000 homes. It cites research by Companen suggesting that a third of new private tenants sign a short-term contract, and another study saying more than half of young people do this in Amsterdam, leading to ‘precarious’ housing rights.

The new law proposal will have exceptions such as if a landlord is temporarily working abroad or wants to move back into the home, and also for temporary student rooms.

‘But that won’t be the norm,’ said Nijboer. ‘The norm will be a permanent contract. Houses are to live in and housing is a constitutional right. You can own it, but you may not misuse your position of power against tenants who are dependent and have nowhere else to go – but that is what is happening in the Netherlands.’

Priced out: young people cannot find a home

City bans?

Housing minister Hugo de Jonge proposed that local councils could decide whether or not to ban temporary contracts but the VNG municipal councils association has already expressed concerns that this might have a ‘waterbed effect’ and increase problems elsewhere. Nijboer added it was ‘not chic’ for the government to attempt to piggyback a members’ bill with its own proposal.

The Woonbond housing association believes young people and internationals could be especially vulnerable to sharp housing practices, and would be protected by a ban on most temporary contracts.

Spokesman Mathijs ten Broeke said that they had anecdotal evidence of renters and house hunters who were being exploited. ‘Since the temporary rental contracts were introduced in 2016, the private rental market has almost doubled,’ he said. ‘It has become appealing to invest in a home and rent it out expensively, and young renters gravitate towards expensive rentals because other sectors are not in reach.’

Expats

‘Landlords can always say: if you don’t like it, I won’t extend your contract. That means renters put up with a lot, whether that’s poor maintenance or rents that are too high. Also for expats and people who come from abroad to live here temporarily, it is to their advantage that a landlord can only offer a permanent contract, which means their rights are properly protected. It means they can’t fall out of the boat.’

Under normal rental contracts, landlords can increase the rent once a year, by a maximum of 4.1% this year, while service costs cannot be used to generate profit. ‘What there isn’t room for is to end a temporary contract and then throw up the rent limitlessly for the next renter,’ said Ten Broeke. ‘A lot of misuse has been made of this in the tight housing market.’

In April, MPs Nijboer and ChristenUnie’s Pieter Grinwis will be defending their bill and then it will go to a parliamentary vote.