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The Dutch government will introduce an upper rent limit for more than 300,000 houses to make real estate more affordable for middle-income tenants amid a huge housing shortage, Bloomberg reports.
According to the plan, the cost of renting will be reduced by an average of €190 per month when the new measure comes into force in January 2024.
Details. The Minister of Housing and Spatial Planning Hugo de Jonge wants to expand the rent control for social housing so that it applies to all houses with a rating of up to 187 points according to the Dutch housing assessment system.
The price will be indexed every year taking into account inflation, and when the law comes into force in January 2024, the maximum monthly rent for these objects will be about €1,100.
Context. According to the minister, people with average incomes, such as teachers, nurses, and police officers, are struggling to cope with rising rents due to a "huge shortage" of housing. The rating system will become mandatory, which means that landlords who do not comply with the established maximum rent may be fined.
Corporations and institutional investors want to build 100,000 homes for middle-income people by 2030, the government communique says. As the rules tighten, tenants will receive more protection, and landlords will want to invest more in this sector, the report says.
Source: Investor.bg
Photo by Javier M. on Unsplash
