The cabinet plans to change the way maximum rents are calculated for rental properties in the Netherlands, in a bid to prevent landlords — particularly in popular urban areas — from selling their homes and further reducing the supply of affordable housing.

On Thursday, the estate agents’ organisation NVM said two in five homes currently for sale in major Dutch cities are former rental properties. Figures from the land registry office Kadaster show that small apartments in popular cities are the most likely to be sold off.

The government introduced new rent control rules in July 2024, expanding the number of properties covered by the system. Combined with higher taxes and the abolition of short-term rental contracts, the changes have prompted many small landlords to exit the market.

Housing minister Mona Keijzer now says she intends to adjust the points-based system used to determine maximum rent levels, allowing landlords to charge more. “I want to make mid-market rentals more attractive to landlords so they don’t sell,” she said.

The changes will distinguish between inner-city properties in high-demand areas and housing in smaller towns and villages, reflecting the higher value of homes in urban centres.

Flats will no longer be penalised for lacking outdoor space, and the value of the property will weigh more heavily in rent calculations. Landlords will also be given greater flexibility to offer temporary contracts to students. The changes will apply to new rental agreements.

Tenants’ rights group Woonbond accused the minister of shifting the housing shortage onto renters. “If her aim is to make renting more attractive, she should do something about the tax landlords pay,” a spokesman said. “That would be far more effective and would not impact on tenants.”

Deputy mayor for housing in The Hague Robert van Asten told Nieuwsuur that Keizer’s proposal would be counterproductive. “We wanted to regulate rental prices so that they were affordable for a big group of people, the middle classes that we would like to keep in our cities,” he said.

Landlords’ association Vastgoed Belang said the government’s proposals do not go far enough. “We continue to be astonished at how little political will there is to solve the housing crisis,” the organisation said. “If the government really wants to ensure sufficient affordable housing, taxes must be cut.”

Keijzer acknowledged the impact of the current tax regime and said discussions on reforming the Box 3 asset tax are still ongoing.

Although parliament voted by a wide majority in favour of the July 2024 changes, it is unclear whether Keijzer will be able to secure enough support for the partial u-turn.

While many private landlords have been selling small apartments to first-time buyers, thanks to new build, the number of privately-owned rental properties in the Netherlands shrank by just 413 homes last year, said Nieuwsuur. According to CBS statistics office, the country had 3,508,252 rentals in 2024, the highest ever figure.