From July 1, 2022, housing associations plan to raise the cost of renting social housing by an average of 2%. Those tenants who have an income above the established bar will have to pay even more. The increase in rent for tenants in this category is not included in the calculated figure of 2%.
In connection with the coronavirus epidemic in 2021, the Government of the Netherlands banned the increase in the cost of renting social housing. In 2020, the maximum increase in rent for such housing can be 2,3%, which corresponds to the inflation rate from November 2020 to November 2021.
Housing associations claim that rent growth in 63% of homes is below inflation, with inflation picking up since early 2022. In addition, 30% of housing associations set reduced rents for housing in low-energy homes. Thus, according to landlords, the increase in rent becomes inevitable.
At the end of 2021, the average rent for social housing was 563 euros per month. Accordingly, the average increase in rent will be 11,26 euros per month. Companies renting social housing explain the rise in prices not only by inflation, but also by the increasing costs of its maintenance.
How to increase the rent for those who earn more
In 2022, the Government allowed housing associations to set differentiated rents for tenants with different income levels. Depending on the level of income, wealthy tenants will have to pay 50-100 euros more monthly than last year.
If the family consists of 1 person and has a gross income of more than 47 euros per year, the maximum increase in rent will be no more than 948 euros per month. If this person earns more than 50 euros, then the increase in rent can reach 56 euros per month. If the family consists of several people, then the rent can be increased by 527 euros per month if the total income is more than 100 euros, and by 50 euros if this income exceeds 55 euros.
Some housing associations refuse to differentiate the rent for apartments depending on the income of the tenants. They explain their refusal by fundamental considerations about the injustice of such an approach. In associations that introduce rent differentiation, rent growth will average 4,2% (€41 per month) for less than average income tenants and 5,8% (€81 per month) for those with above average incomes.
The Netherlands has a government program for the construction of social housing. It provides for the commissioning of 100 apartments per year. Approximately 000 apartments of this volume should be built by housing associations. Find out more about this program on our Online.
Representatives of the associations appeal to the municipalities (gemeente) with a request to speed up the allocation of sites for construction and the execution of documents through the authorities.
Publication Date: 03.06.2022
