Affordable Rent Act

With the Affordable Rent Act, the government wants to make rents affordable again. The law ensures that more people can get affordable rental housing with a rent that matches the quality of the property. With this law, the regulated rent is extended to rental homes in the middle segment up to 186 points that will cost a maximum of € 1,157.95 per month according to the Housing Rating System (WWS). Now tenants themselves must enforce a maximum rent with their landlord, but not all tenants are able to do so. Municipalities will soon be able to intervene if landlords charge too much rent.

Rent down an average of €190

By combining the regulation of middle rent and making the WWS point system mandatory, it is estimated that the rent of over 300,000 homes will be reduced by an average of €190 and 113,000 rental homes will be added in the affordable segment.

Middle Rent

The advent of the Affordable Rent Act introduces a new sector, the middle rental sector. A middle rental contract exists if:

• It a new lease is entered into on July 1, 2024 or later;
• The contract is about independent living accommodation;
• The contract has a bare rent between €879.66 and €1,157.95.

What does this mean for leases?

The Affordable Rent Act contains rules for new leases entered into on or after July 1. In addition, the law contains rules for existing contracts entered into before July 1.

For new leases starting July 1, 2024, the following applies:

• The landlord must provide the tenant with a point estimate. This must show how many points the property has and the maximum rent that goes with it based on the Housing Rating System (WWS).
• The landlord must adhere to the maximum rent associated with this point number. If the landlord fails to do so, the municipality can impose a fine. The tenant can also protest the high rent and go to the Rent Commission.
  Three possible situations apply to existing rental contracts:
  1. The contract for an independent dwelling was already regulated under the old rules. This applies if the bare rent at the time the contract was entered into was below the liberalization threshold applicable at the time.
  Non-self-contained housing (rooms), caravans and pitches have always been regulated. For this situation, the Affordable Rent Act takes effect immediately, on July 1. This means that the landlord must comply with the maximum rent of the WWS point system with immediate effect.
  2. The self-contained property is a freehold (the contract was liberalized), but the property has less than 144 points on or after July 1. A contract for an independent dwelling is liberalized if the rent at the time the contract took effect was above the then-current liberalization limit.
  For this lease, the Affordable Rent Act does not take effect for one year, which is July 1, 2025. From that date, the landlord must adhere to the maximum rent of the WWS and the maximum annual rent increase for regulated rental housing.
  3. If the existing contract for independent housing does not fall under the above two situations, the Affordable Rent Act does not apply to it.

Maximum rent

The maximum rent for a property is calculated based on the point number the housing unit has (WWS point system). This point number is calculated with the Rent Check of the Rent Commission. This is an online tool that provides insight into the Housing Rating System (WWS). Which Rent Price Check is used depends on whether the living space is independent or non-independent.

As part of the Affordable Housing Act, the WWS is also being modified. As a result, the point number of existing homes may also change as of July 1, 2024. The Rent Commission is adjusting its online tool so that the Rent Price Check will be fully updated and accurate even after July 1. This new Rent Check will come online before the Affordable Rent Act takes effect. Until it is updated, the current rules apply.