On Mar. 28, NLD BAC issued response to the draft affordable rent act.
NLD BAC issued a response to NLD BZK consultation on the draft Affordable rent act.
Draft Affordable Rent Act
On Feb. 27, 2023, NLD BZK issued a draft bill aiming to put an end to excessive rent.
In order to make tenants pay a fair price for their home, NLD GVT wants to regulate the middle rent and make the housing valuation system (WWS) mandatory.
In recent years, rents in the private sector have risen excessively, making them unaffordable for first-time buyers or for people on a middle income.
The law and WWS ensure that the rents are in proportion to the quality of the home.
This means that landlords are obliged to adhere to the maximum rents.
As a result of these measures, the rent of more than 300,000 homes will be reduced.
Law focuses on 4 goals: more affordable rental housing, better protection of tenants, making homes more sustainable, continuing willingness to invest in new construction.
Consultation on the bill commenced on Feb. 27, 2023, and ended on Mar. 28, 2023.
NLD BAC Response
On Mar. 28, 2023, NLD BAC issued a response to the consultation on the draft bill.
NLD BAC said for a sustainably functioning and affordable rental housing market, a coherent, balanced policy re construction, rents, tax measures, financing is necessary.
The focus of NLD GVT on regulating and lowering rents in a deteriorating investment climate, with sharply rising interest rates, leads to less affordable rental housing.
The cost of housing projects are increasing and are becoming more difficult to finance.
Furthermore, the existing stock of rental properties is also decreasing.
NLD BAC said that, in its opinion, the Affordable rent act has a counterproductive effect on the intended policy objectives, and it therefore cannot support it.
Broader Vision
NLD BAC advocates a broader vision to effectively achieving the policy objectives.
Accelerate new construction production; simplify options for use of existing housing stock; prevent public-private excesses through good landlordship.
Take into account a strongly deteriorated financial climate; utilize the potential of flexible homes for the mid-rental segment; create stability in the real estate market.
And use the perspective of banking economists for improvements to the rental market.
Bill on proposed legislative amendment to Good landlordship act, Book 7 of the Civil Code, the Implementation act for residential rental prices, and any other laws relating to the regulation of rental prices and protection of tenants' rights.
Affordable rent act proposed to enter into force on Jul. 1, 2024.
May 2024 Response Memorandum
On May 31, 2024, NLD BZK issued memorandum on Affordable rent act report.
NLD BZK minister appealed for quick submisson of the bill for plenary consideration.
Jun. 2024 Senate Approval
On Jun. 25, 2024, NLD BZK said the Senate has approved the Affordable rent act.
This means that the law will come into effect on Jul. 1, 2024.
Landlords must adhere to maximum rent with all new rental contracts concluded on or after Jul. 1, 2024; municipalities given until Jan. 1, 2025 to prepare for enforcement.
From Jan. 1, 2025, landlords can be fined by municipality if they do not comply.
Sep. 2024 Rental Property Tax Burden
On Sep. 24, 2024, NLD GVT members of parliament submitted questions to the state secretary for finance (taxation and tax authorities), minister of housing and spatial planning and the prime minister, about the tax burden on mid-range rental properties.
Affordable rent act, effective since Jul. 1, 2024, makes the housing valuation system (WWS) mandatory and this system will also apply to mid-range rental properties.
Making WWS mandatory should eventually lead to a rent reduction for approximately 163,000 homes by enforcement, with an average amount of €145 / month per home.
Approximately 157,000 homes will decrease in price when there is a change of occupants, with an average rent reduction of approximately €240 euros per month.
Rent in this case falls from €1000 / month to €898.62; affects revenues, not tax due.
