Rents rose by an average of 0.8 percent in July compared to a year earlier. That is the smallest rent increase since 1960, reports the Central Bureau of Statistics. The price increase for social housing was 0.3 percent and that of houses in the private sector was 2.2 percent.
The small rent increase is no coincidence. Through legislation due to the corona crisis the rents of regulated rental homes may not rise for a year from 1 July. Last year, the maximum permitted rent increase was 5.1 to 6.6 percent. Furthermore, this year a one-time rent reduction introduced for tenants of housing associations if there is a high rent and a low income.
A landlord does not have to adhere to the maximum rent increase if a new tenant moves into the house. In those cases, the average rent in July was 7.2 percent higher than a year earlier. In 2020 that was still 9.5 percent.
For a private sector home, the annual rent increase over the next three years is limited to 1 percentage point higher than inflation. This year, that is a maximum of 2.4 percent. earlier it was known that rents in the free sector continued to fall with new leases. This was mainly because expats in the major cities stayed away due to the corona crisis.
Overijssel
The rent increases in July are not the same everywhere in the country. Rents in Utrecht rose the most of the four major cities, by 1.6 percent compared to a year earlier. The increase was lowest in The Hague, namely 0.8 percent.
In terms of provinces, Overijssel had the highest rent increase with 1.4 percent. Existing tenants in Groningen and Drenthe saw no difference in their rent compared to a year earlier.
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