A lack of investment in the mid-price sector of the housing rental market has led to an acute shortage of homes for middle-income families.

This in turn is having an adverse effect on the social housing sector, according to a report published on Tuesday by the property managers’ organisation VGM NL and the real estate agents’ association NVM.

The number of homes on offer for up to €1,000 in the popular centres of the main cities is very limited because of a lack of investment over the past several decades, the two organisations say.

This is preventing people from moving from social housing into private sector property – with a rent of over €710 a month.

According to NVM chairman Ger Hukker, the mid-price sector should be made more attractive to investors. ‘You could, for instance, lower the liberalisation limit,’ he told broadcaster Nos.

The liberalisation limit is €710.68 a month at which price a home falls into the private sector and is subject to far fewer regulations. Lowering the limit would put more homes into the private sector and encourage more investment, Hukker said.