Tenants' association fears excessive rent increases in social housing next year

The tenants’ organization Woonbond fears that rents in the social housing sector could increase even faster next year than this year. That is why the interest group for tenants is calling on the government to intervene. "Without intervention, tenants will fall through the ice in 2025," says Woonbond director Zeno Winkels.

Central Bureau of Statistics (CBS) reported on Wednesday that Dutch rents in July had increased the most in over 30 years. Rents were, on average, 5.4 percent higher than in July last year. For social housing, the average rent increase was even 5.6 percent.

According to the Woonbond, the sharp increase is because rents in the social housing sector may be increased to a maximum equal to the average wage increase. The organization points out that the average wage increase for this year was previously estimated at 6.6 percent. "Without adjustment of the system, landlords in the social housing sector will therefore implement a rent increase of 6.6 percent next year ."

The Woonbond also indicates that politics has already intervened in the private sector. Earlier, the Tweede Kamer decided that the annual rent increase for those more expensive rental properties may be a maximum of the inflation rate plus 1 percent or the average wage increase plus 1 percent. The lower of those two options applies, meaning that such a strong increase will not likely happen in the private sector next year.

The Woonbond calls on the government to also apply this "lower of the two" system to the social housing sector. "Many tenants have been struggling for a long time. Groceries and other daily necessities are barely affordable. Another disproportionate rent increase is the kiss of death," argues Winkels.

According to the rent leader, moderating the rent increase would be good for tenants and sensible if the government wants to keep an eye on government spending. "A portion of the rent increase is compensated for poorer tenants by the rent allowance, leading to higher expenditure from the treasury. In this way, tenants and the government pay for the high rent increases."

Housing associations see no financial problems due to sharp rise in rents

The substantial rent increases in July do not seem to be causing financial problems for people in social housing. Housing corporation Ymere says it has not heard this from tenants. According to a spokesperson, the Alliance has received few to no signals about this.

On Wednesday, the Central Bureau of Statistics (CBS) reported that housing rents in July saw the largest increase in over thirty years. They rose by 5.4 percent on average, while housing corporations increased rent by 5.6 percent. Ymere and the Alliance say that the income of many tenants has also increased recently. For example, benefits and housing allowances are higher, which is why many people spend a relatively smaller part of their income on rent, they emphasize.

Aedes, the association of housing corporations, has made agreements with the government and tenants' association Woonbond about increasing rents. This includes that rents may increase by a maximum of 0.5 percent less than the collective labor agreement wages. These have risen considerably recently, which is why the maximum increase in rents in July was also higher.

Woonbron also says that they receive few to no signals that residents are getting into trouble because of the rent increases. This housing corporation and Ymere say that they offer help if residents have trouble paying the rent.

The Woonbond fears that rents for social housing will increase even more next year than they did this year. The organization points out that the average wage increase for this year is estimated at 6.6 percent. The Alliance, Ymere, and Woonbron say they do not know how much rent will increase next year.

Housing corporations raise rents to build new homes on the tight housing market and for home maintenance, renovations, and sustainability. "Corporations also have their costs, but they look at the affordability of their rents and try to keep them as low as possible. They also want to build new homes for people on a waiting list," explains a spokesperson for Aedes. Without rent increases for new residents, rents have risen less sharply, by an average of 5.1 percent, according to him.