The cabinet is working on plans to develop five-year tenancy agreements for first-time tenants, youngsters and large families who are trying to find a rent-controlled property.

These three categories of people find it difficult to rent a house and ministers think shorter tenancies will make it easier for people to move up the housing ladder.

A five-year tenancy means people whose income goes up will be forced to move to a more expensive home or buy their own. Large families would also be forced to downsize when children leave home.

The plans will be discussed in the cabinet later today, website nu.nl reports.