Changing laws and regulations for rental properties in the Netherlands

The Dutch government has announced major changes for rental housing rentals. These changes will greatly affect residential landlords and tenants. In this article, we take a closer look at the new rules and how they will affect the rental market.

In recent years, residential property rents in the Netherlands have risen considerably. To halt this rise, a new law that should better protect tenants from skyrocketing rents is scheduled to take effect from 2024. From then on, the rental price of a large portion of the houses in the free sector will also be determined on the basis of the quality of the rental home by means of a point system, the housing valuation system (‘WWS’).

New liberalization limit 2024
Currently, the WWS only applies to social housing. On February 27th 2023 a bill was introduced for consultation to extend the WWS to middle segment housing. If this passes and the bill takes effect on January 1st 2024, a maximum rent will also apply to houses up to 187 WWS points. These 187 points is equivalent to a monthly rent of approximately EUR 1,100.

Changes to the WWS system
There will also be changes in the WWS point valuation. For example, more points will be awarded for outdoor spaces such as gardens and roof terraces. In addition, homes with higher energy performance labels will receive more WWS points. This makes insulating and making houses more sustainable a serious consideration for property owners to optimize rents for the WWS points 2024.

As a result of the above plans, there is a fear that the number of rental properties is rapidly decreasing, causing the opposite effect. From the market we hear that many private landlords currently feel compelled to sell their rental properties, because renting out will soon no longer be profitable. At the same time, demand is only increasing, causing rental prices to rise. It is our expectation you will see this particularly in cities such as Amsterdam, Utrecht, The Hague and Rotterdam.

It is not yet clear who will be responsible for monitoring compliance with rent regulation, but it is expected that this will lie with the municipalities. Residential landlords will soon have to be able to prove that the agreed rent is correct with the new WWS point count, for every lease concluded after January 1st 2024.

TOSS in Holland
TOSS in Holland offers a wide range of services related to Global hiring, working and moving to the Netherlands. Not only the road to The Netherlands but also assistance in settling and living in The Netherlands is part of our services.

If you seek appropriate advice on upcoming changes in the WWS points system, the TOSS Housing agents are here to help.

And if you are looking for a estate agent, TOSS housing has a large network of property owners and fellow real estate agents which could be very helpful for you and possibly your ticket to your dream place of stay or to find your new tenant(s).

TOSS is here to help!!