Rent Hikes Hit Middle-Income Tenants Hardest
The Dutch government has set new maximum rent increases, with mid-market tenants facing the largest potential hike of 6.1%.
The Dutch government has set new maximum rent increases, with tenants in the mid-market housing sector facing the largest potential hike.
Why it matters: The varied caps show the government's struggle to balance tenant protection against the need for landlords to keep investing in a tight housing market.
By the numbers:
- Mid-market housing: can rise by a maximum of 6.1%.
- Free sector housing: is capped at a 4.4% increase.
- Social housing: faces the lowest maximum increase at 4.1%.
The backstory: The government uses different economic indicators to calculate the maximum increase for each rental category, creating different outcomes for tenants.
Details:
- Mid-market rent is tied directly to wage growth (average wage increase + 1%).
- Free sector rent is linked to the lower of inflation or wage growth, plus 1%.
- Social housing rent is based on average inflation over the past three years, plus 0.5%.
The bottom line: These regulated caps aim to curb runaway rents, but tying increases to different economic indicators creates unequal outcomes for tenants.