The cabinet has agreed to freeze the maximum rents in the rent-controlled housing sector at €699, Nos television says.

At the same time, efforts are to be made to encourage investors to build more homes costing between €700 and €1,000 a month for middle-income households, the broadcaster says.

On Tuesday, Labour MP Jacques Monasch warned that social housing will become too expensive for families on low incomes if rent increases continue.

Household income may not exceed €38,000 to qualify for social housing in the Netherlands, under EU rules.

Housing corporations are now to be encouraged to build more rent-controlled housing while the private sector should get involved in building more expensive homes, the broadcaster says.