Destination Services update — Affordable Rent Act passed and effective as of July 1, 2024

The Dutch housing market is undergoing significant changes with the recent approval of the Affordable Rent Act by the Senate on June 25, 2024. On June 25, 2024, the Senate in the Dutch parliament approved the new Affordable Rent Act (commonly referred to as “wet betaalbare huur”). This law will come into effect on July 1, 2024. The Affordable Rent Act introduces several significant changes to the current rental law for housing:

Key changes introduced by the affordable rent act:

• Medium-price housing category: A new housing category will be introduced, falling between the current regulated and liberalized housing categories. This medium-price category pertains to independent living accommodations. Based on the housing valuation system (WWS), the allowable rent will range between €879.66 and €1165.81 per month, effective from July 1, 2024. The same rent rules will apply to this new category as to current regulated housing, with a few exceptions.
• Enhanced rent review opportunities: Tenants of deregulated housing will now have greater opportunities to have their rent reviewed by the Rent Tribunal (“huurcommissie”) without the need to submit a request within six months of entering the lease.
• Revised WWS: The WWS will be updated, awarding minus points for low energy labels and updating the WOZ-cap.
• Landlord obligations: Landlords will be required to inform tenants about the point allocation of the rented housing.
• Mandatory point allocation: The point allocation from the WWS will become mandatory for all independent accommodations with a point allocation of less than 187 under the Good Landlord Act, enforceable under administrative law. Excessive rents may result in administrative fines up to €23,750 for the landlord for a first offense.
• Enforceable rent increases: The maximum annual rent increase percentage will be administratively enforceable for all rental properties. Rent increases above the applicable percentage may result in fines up to €23,750 for the landlord for a first offense.

For more details, the official communication by the Dutch government about the new Affordable Rent Act can be found here.

At this moment, the exact consequences of the new law are not fully known. However, there has already been a significant increase in landlords selling their properties, which is expected to continue. This may result in higher prices for properties above the 187-point threshold and a significant drop in availability for properties of 186 points and lower (smaller two-bedroom and one-bedroom apartments).

At Santa Fe Relocation, we understand the complexities of these changes and are here to assist you. If you need help navigating the new regulations or any other relocation challenges, please reach out to us. We are committed to supporting you and your teams through these transitions.

Richard Hoogzaad
Senior Relocation Consultant / Account Service Manager
Santa Fe Relocation Amsterdam NL
richard.hoogzaad@staging.santaferelo.com

Louisa Wright
Account Manager
Santa Fe Relocation Amsterdam NL
louisa.wright@staging.santaferelo.com

Fleur Apol
DSP Team Lead — Netherlands and Belgium
Santa Fe Relocation Amsterdam NL
fleur.apol@santarerelo.com