Good Landlordship Act

Good Landlordship Act
States General of the Netherlands
  • Regels ter bevordering van goed verhuurderschap en het voorkomen en tegengaan van ongewenste verhuurpraktijken
Passed byHouse of Representatives
Passed7 March 2023
Passed bySenate
Passed21 March 2023
First chamber: House of Representatives
Introduced byHugo de Jonge
Status: In force

The Good Landlordship Act (Dutch: Wet goed verhuurderschap) is a statute regulating rented housing in the Netherlands.

Legislative history

The Good Landlordship Act was introduced in the House of Representatives by Minister for Housing and Spatial Planning Hugo de Jonge on 7 June 2022. It was passed by the body on 7 March 2023 with 147 out of 150 votes in favor; only the Van Haga Group voted in opposition. The Senate approved the bill on 21 March without a vote.[1][2]

Affordable Rent Act

De Jonge first proposed the Affordable Rent Act in the spring of 2022, intending to increase the affordability of rental properties for middle-class citizens who are ineligible for public housing by implementing rent control.[3][4] He formally introduced the bill in the House of Representatives as an amendment to the Good Landlordship Act on 5 February 2024.[5] Rent for homes with fewer than 186 points according to a points system already used for public housing (fewer than 147 points) would be capped in new contracts.[6] About 300,000 homes were expected to be in this category. Points are awarded for characteristics such as size and level of insulation of the property.[3] The maximum rent for homes with 186 points would be at €1,123 per month, and rents could be raised yearly at most by the average wage increase in collective agreements plus one percentage point. In order to incentivize housing developments, new construction before 2026 would be permitted to have 10% higher rents.[3][7]

The bill as submitted by De Jonge to the House differed in several ways from his initial proposal in response to a warning by the Council of State that the bill would make the Dutch housing markets less attractive to investors. The revised version included a higher permitted yearly raise of rents, a broader exception for new construction, and higher rents for properties with a high value.[6][7] Despite De Jonge's adjustments, mostly center-right parties still believed that the proposal would lead to a decline in the rental stock as a result of lower incomes for landlords.[3] Due to the fourth Rutte cabinet being a caretaker government, the House could have barred treatment of the bill by declaring it controversial. However, this action was not supported by a majority.[8] The Affordable Rent Act was adopted by the House in April 2024 with 112 out of 150 votes in favor; several center-right and right-wing parties including VVD and BBB were in opposition. An amendment by GroenLinks–PvdA reduced the allowed rent for properties with a poor energy rating.[9][10] The Senate passed the bill on 25 June 2024, and it went to effect on 1 July.[11]

References

  1. ^ "Wet goed verhuurderschap" [Good Landlordship Act]. House of Representatives (in Dutch). Retrieved 6 February 2024.
  2. ^ "Wet goed verhuurderschap" [Good Landlordship Act]. Senate (in Dutch). Retrieved 6 February 2024.
  3. ^ a b c d "Minister dient huurwet in, steun in Tweede Kamer onzeker" [Minister files new rental bill, unsure of support in the House of Representatives]. NOS (in Dutch). 6 February 2024. Retrieved 6 February 2024.
  4. ^ Obbink, Hanne (6 February 2024). "Huren verlagen? Dat had tien jaar geleden moeten gebeuren" [Decreasing rents? That should have been done ten years ago]. Trouw (in Dutch). Retrieved 10 February 2024.
  5. ^ "Wet betaalbare huur" [Affordable Rent Act]. House of Representatives (in Dutch). Retrieved 6 February 2024.
  6. ^ a b Van Rein, Erik; Wolzak, Martine (6 February 2024). "Redt De Jonge zijn huurwet met 'vergaande' tegemoetkomingen aan woningbeleggers?" [Is De Jonge saving his rented housing bill through 'far-reaching' concessions for investors?]. Het Financieele Dagblad (in Dutch). Retrieved 7 February 2024.
  7. ^ a b "Demissionair minister De Jonge wil lagere huren regelen, voor nieuw kabinet er is" [Demissionary Minister De Jonge wants to lower rents before a new cabinet is sworn in]. RTL Nieuws (in Dutch). 6 February 2024. Retrieved 6 February 2024.
  8. ^ Wolzak, Martine (8 February 2024). "Huurwet De Jonge neemt eerste horde met steun van NSC en PVV" [De Jonge's rental bill passes first obstacle through support of NSC and PVV]. Het Financieele Dagblad (in Dutch). Retrieved 11 February 2024.
  9. ^ Wolzak, Marine (25 April 2024). "Tweede Kamer neemt nieuwe huurwet met grote meerderheid aan" [Large majority of the House of Representatives votes in favor of new rental bill]. Het Financieele Dagblad (in Dutch). Retrieved 25 April 2024.
  10. ^ "Ruime steun Tweede Kamer voor strengere aanpak woekerprijzen huurwoningen" [Widespread support in the House of Representatives for more strictly tackling exorbitant rents]. NOS (in Dutch). 25 April 2024. Retrieved 25 April 2024.
  11. ^ Van Eijsden, Auke (25 June 2024). "In de laatste week van Rutte IV stemt ook de senaat vóór de omstreden huurwet van minister De Jonge" [The Senate also votes in favor of controversial rent bill of Minister De Jonge in last week of Rutte IV]. Trouw (in Dutch). Retrieved 25 June 2024.