More signs that the Dutch rental housing market is shrinking

Renting to expats is a lucrative business. Photo: Dutch News

More evidence has emerged that small private landlords are selling their rental homes because of tough new rules on rent controls and higher taxes, according to figures from estate agents association NVM and landlords lobby group VGM.

“Compared with the second quarter last year, there has been a 25% reduction in the number of new contracts,” the organisations said.

New contracts for family homes fell by one third and 25% fewer leases were signed for flats. “This trend has been ongoing for three years,” the organisations, which represent around half the rental market in the Netherlands, said. Rents have risen 8% over the past year.

“Tenants with an average or lower income are being hardest hit by this cocktail of measures which have led to the sell-offs,” said Lana Gerssen, from NVM Wonen. “They are unable to buy their rental flat, and they face murderous competition to find another affordable home.”

“We hope the new housing minister will keep a close eye on developments in the housing market and act to prevent things getting worse,” Gerssen said.

The figures, based on 35,000 transactions, are in line with statistics published by housing platform Pararius earlier this month. It said rents had risen 10% over the past year and the supply of rental properties had gone down by one third.

Broadcaster NOS said earlier this month that big institutional investors like Vesteda and Bouwinvest are not selling off property and that they expect little impact from the new rent rules.

However, earlier research by NVM statistics unit Brainbaby showed that the size of rental properties is increasing, which indicates smaller apartments, which do now fall under rent controls, are more likely to be sold off.

Tenants rights

Meanwhile, tenants’ rights group Stichting Woon has warned that single rooms are still being offered for rents which break the new controls introduced on July 1.

Local councils will not start checking up on landlords until the new year, by which time all landlords will have to tell tenants how many points a room has – which in turn determines the rent.

Stichting Woon’s Gert Jan Bakker is recommending that people still sign the lease on single rooms in shared property, even if they suspect the rent is too high.

“Rent the room, report it to the rent tribunal the same day, wait a couple of months and then the tribunal will probably say the rent should be around €300,” he said on social media.

The same applies to small flats, he told RTL adding that rent of over €1000 for 30 square metres is impossible.

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