Last week, the House of Representatives debated the rising rent prices. Various opposition parties called for a rent freeze or even a reduction, but the coalition will not support this.
At least, not yet. Lower rent for social housing was an election promise of the PVV, but nothing is happening for now. “Maybe in the Spring Memorandum”, was the response to the barrage of criticism from the opposition.
In the social housing sector, which includes many student residences, rents may increase by 5 per cent. A rent of 500 euros could therefore rise to 525 euros, meaning an extra 300 euros per year. If students rent a house together, the increase could be even higher: in the mid-market sector, rents may go up by a maximum of 7.7 per cent.
Inflation
Previously, rental prices followed inflation, but then came the invasion of Ukraine and the energy crisis. Inflation soared, leading to a change in the rules: since 2022, rent increases have been linked to collective labour agreement (CAO) wages. However, while inflation has now decreased, wages are catching up.
Under these rules, rents in social housing could rise by 6.5 per cent this year, even though inflation is around 3 per cent. After discussions, the government settled on a ‘middle ground’ of 5 per cent.
Part-time job
The Dutch Student Union (LSVb) finds it odd that student rent prices are linked to CAO wages. “That doesn’t really make sense”, says chair Abdelkader Karbache. “It’s actually quite illogical that student housing is included in this, because students don’t work full-time, or they don’t have time for a part-time job at all because they have to do an internship, for example.”
Social housing landlords consider the rent increases a necessity. They argue that they need the money for new construction and improvements to rental properties. Moreover, the percentages represent the maximum increase; the exact rent hikes will depend on individual landlords. The new rates will take effect from 1 July.
Living away from home
From 2026, the maximum annual rent increase will be linked to a three-year average of inflation, the government has announced. This will make rent increases less variable.
About half of students are ‘living away from home’. International students have to: after all, their parents live in another country. Among Dutch students, the tightness in the housing market is making itself felt. Of them, less than half have left parental home.
