Due to high inflation and rising energy prices, low-income residents of the Netherlands are finding it increasingly difficult to make ends meet. To a large extent, this state of affairs is due to the excessively high rents for social housing. The government is concerned about this problem, therefore, having agreed with housing associations and municipalities (gemeente), from July 1, 2023, it will reduce the rent for those in need of such assistance. The maximum rent for low-income Dutch people will be 575 euros per month. The rent reduction will affect 510 households.
Initially, the rent reduction was planned to be introduced from 2024, but the government plans to start as early as July 2024. The resulting additional costs will be partly offset by an increase in rent for more affluent households by 16,94 euros per month.
The maximum rent will be capped at €575 per month for those who pay more and earn less than 120% of the minimum income. The limitation of rent payments will affect households in which people receive state pensions and have annual incomes less than the following amounts:
- Single people - 23 euros,
- Elderly single people - 24 euros,
- Households with several people - 30 euros,
- Households of several elderly people - 32 euros.
If children under the age of 27 live with the elderly, the children's income is not taken into account when deciding whether to reduce the rent.
An agreement with landlords was reached by abolishing the state fee from them from 2023. In this way, housing associations will save 1,7 billion euros, due to which it will be possible to reduce housing prices for those in need.
From 2024, a new housing assessment system (woningwaarderingsstelsel - WWS) will be introduced. The amount of the rent depends on this assessment. In the new system, housing will be evaluated by more parameters. The introduction of the new WWS is expected to reduce the cost of renting more than 300 homes. More on changing WWS − in our article.
Follow the news on our website and ask for help when filing tax returns, tax refunds, requesting subsidies and interacting with the tax authorities.
Publication Date: 27.12.2022
