Landlords Flout Affordable Rent Act with Sky-High Mid-Range Rents

Landlords Flout Affordable Rent Act with Sky-High Mid-Range Rents

Since July 1 last year, the Netherlands’ Affordable Rent Act has aimed to curb soaring mid-segment rents by extending the social housing points system to private rentals. Yet research by RTL Nieuws revealed over 60 listings on Funda likely charging tenants hundreds of euros more than legally allowed. A 39 m² flat in The Hague listed for €2,645 per month and a 53 m² Arnhem home asking €1,600 monthly highlight the extent of non-compliance. In this article, we explore why landlords ignore the regulation, how the points system works, tenant remedies, and paths to better enforcement.

Understanding the Affordable Rent Act and Points System

The Affordable Rent Act (Wetsvoorstel Woonakkoord) was introduced to fight unaffordable rents in the “mid-segment” market—properties that fall between social housing and purely commercial rentals. Under the law:

• Each property is evaluated via the national points system, originally for social homes. Points are awarded based on factors like living area, energy label, quality of kitchen and bathroom, and location.
• Mid-segment rentals score between 144 and 186 points. Landlords may set rents from €879 up to €1,165 per month, depending on the exact point total.
• Properties below 144 points remain in the social sector (subject to social rent), while those above 186 points are free-market and unregulated by this act.

By capping mid-segment rents, the law aimed to add roughly 25% more affordable listings to the private rental market. However, gaps in enforcement and landlord awareness—or disregard—have undermined its impact.

RTL Nieuws Investigation: Real-World Overcharges

On a random day in early 2024, RTL Nieuws surveyed Funda listings and flagged over 60 mid-segment homes exceeding their legal rent:

According to RTL’s estimates—based on size, location, energy label, and amenities—many landlords demand hundreds of euros above the regulated threshold. If these homes were priced correctly, the number of genuinely affordable rentals would surge, easing the severe housing shortage.

Why Landlords Push Their Luck

Experts point to two main drivers:

1. Housing Shortage: With vacancy rates hovering near historic lows, tenants often accept inflated rents out of desperation. As Matthijs ten Broeke of tenants’ union Woonbond observes, “As long as there is such a shortage, landlords try to push the limits.”

2. Weak Enforcement: The law places the burden on tenants to challenge excessive rents. Landlords face minimal proactive checks, and local authorities lack resources for systematic audits.

Erik Visser of Steenvlinder Rental Team confirms frequent encounters with landlords asking “far too much” for modestly equipped homes. He warns that the current system relies heavily on tenant action rather than preventive measures.

Tenant Rights and the Rent Assessment Committee

Tenants suspecting overcharges can appeal to the Rent Assessment Committee (Huurcommissie), an independent body that reviews rent levels and service charges. Since the act’s inception, it has ruled in favor of over 50 tenants, often reducing monthly payments significantly.

Steps to challenge a rent:

1. Gather Documentation: Collect the lease, energy label, and any communications about amenities.
2. Submit an Application: File a request with the Huurcommissie. Applications can be made online or by post. A fee applies but may be refunded if the tenant wins.
3. Hearing and Ruling: The committee assesses the points score and issues a binding decision, typically within two months.

Despite this clear process, many tenants hesitate, fearing strained landlord relations or eviction threats. The Woonbond reports instances of intimidation and “irregular contracts” designed to discourage challenges. Nonetheless, a successful ruling grants tenants a stronger legal footing and obliges landlords to repay overcharges.

Additional Support: ‘Huurtoeslag’ and Legal Aid

International tenants and lower-income renters may also qualify for huurtoeslag (rental allowance), a government subsidy that reduces net rent costs. Eligibility depends on income, household composition, and rent levels. Tenants can check qualifications via the Tax Office’s online tool.

For legal advice, tenants’ associations (e.g., Woonbond) and municipal tenant services offer free or low-cost guidance. Pro bono legal clinics also exist in major cities like Amsterdam and Rotterdam.

Improving Compliance: Recommendations

To ensure the Affordable Rent Act achieves its goals, stakeholders recommend:

• Proactive Audits: Municipalities could randomly audit mid-segment listings and sanction overcharging landlords.
• Landlord Education: Clear, accessible information on calculation methods and legal caps should be provided by the government and housing associations.
• Streamlined Appeals: Simplify Huurcommissie procedures and reduce fees to encourage more tenants to challenge unfair rents.

Some experts even argue for integrating digital point-calculators directly into listing platforms like Funda, giving instant transparency to prospective tenants.

Conclusion

While the Affordable Rent Act was a significant step toward fairer mid-segment rents, ongoing non-compliance by landlords undermines its impact. Tenants armed with knowledge of the points system and the Rent Assessment Committee can reclaim overcharges, but broader enforcement and landlord education are crucial for lasting change.

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