Changes in the Rental Market – the Affordable Rent Act

As of 1^st of July 2024, the Dutch government has passed a new law the 'Affordable Rent Act', which introduces significant changes to the rental market. In this article, we discuss the key aspects of this Act and why it may be the perfect time to buy your own property instead of renting.

Point system for rental properties

The Affordable Rent Act regulates the rental market through a point-based system, taking into account various factors such as; the value of the property (WOZ), the area of the flat, the number of rooms, the presence of a balcony or garden, the condition of the kitchen and bathroom, and energy-efficient features. The aim of this point system is to ensure fair and affordable rental prices for tenants.

• Properties up to 143 points must have a maximum rent of € 880
• Properties with 144-186 points must have a maximum rent of € 1157
• Properties above 187 points belong to the so-called free market, where landlords set their own rental prices

Implications for the rental and buy-to-let market

Legal changes have affected the rental market, with many landlords deciding to sell the properties that they have previously rented. As a result, the number of available rental properties is decreasing, while the number of properties for sale is increasing.

It is not just the points system that is prompting landlords of rental flats to sell their investment properties. From 1^st of July 2024, landlords must offer tenants a permanent rental contract. Temporary contracts, e.g. for 2 years, are only possible in specific cases. The points system, changes in the law regarding contracts and changes in the taxation of real estate investments have an impact on the market, favourable or less favourable depending on the perspective.   

Why should you consider buying a property?

The current situation of the real estate market in the Netherlands is conducive to buying:

• A greater supply of properties on the secondary market can lower bidding prices
• The possibility of buying a property fully financed with a mortgage, without having to use savings to bid
• Growing demand and limited supply in the rental market makes bidding for rental apartments a new standard 

Buying your own home is not only an investment in your future, but also independence from your landlord and greater freedom of choice.

Contact us

If you would like to check your options and maximum mortgage capacity, arrange a free orientation meeting with us. Together we will discuss your financial possibilities and help you make the best decision.