President DNB advises politicians to roll back overly strict rental rules

We previously informed you about the Fixed Rental Contracts Act, which came into effect on July 1, 2024, and the Affordable Rent Act. Former minister Hugo de Jonge intended these laws to strengthen the position of tenants. When these laws were voted on in the Lower House, parties such as the VVD and the BBB already feared a wave of sales of rental properties. The Council of State also already indicated that it was unclear whether these laws would help house seekers and whether they would lead to sufficient affordable rental housing. The Council of State called it a real risk that the laws would lead to sales of rental homes and fewer new construction rental homes.

Real estate investors have been warning for some time

Housing Minister Keijzer wrote in her letter to the House of Representatives about a week or two ago that despite landlords’ concerns, the sale of rental properties had not yet reached alarming levels by the middle of this year. This while major real estate investors such as ASR were already warning that the piling up of new rent rules is causing them to divest rental properties in their portfolios.

DNB advises: too strict rent rules to be reversed

Meanwhile, the president of De Nederlandsche Bank (DNB), Klaas Knot, has also advised politicians to roll back the rent rules that are too strict because of their counterproductive effect. Knot argues that these new rental rules will have a dramatic effect on the supply of rental housing in the free sector and he sees large price increases due to the Affordable Rent Act. “Better to be half right than half wrong,” he concludes. “I don’t want to make a political judgment on a law that was also eventually passed by parliament. But I do look at the consequences,” Knot told news agency ANP in Washington. The NVM, the largest trade association of real estate professionals in the Netherlands, endorses Knot’s call to roll back the rent law.

Advice

Do you have questions about the above developments or do you have other legal questions about tenancy law? Our specialized lawyers will be happy to assist you. You can contact one of our lawyers by mail, telephone or fill in the contact form for a free initial consultation. We will be happy to think along with you.