Mid-Priced Rentals in the Randstad Drying Up Following Affordable Rent Act

Mid-Priced Rentals in the Randstad Drying Up Following Affordable Rent Act

Since the Affordable Rent Act took effect on July 1, tenants searching for mid-priced rentals in the Randstad have found almost no options available. Private-sector homes that once rented for around €2,000 per month are now capped at €1,158 under the expanded points system, and landlords are reacting by selling rather than renting out. This rapid shift is squeezing the middle segment while supply for low-priced student rooms and high-end units remains intact.

In this article, we explore the key provisions of the Affordable Rent Act, how landlords and investors are responding, and what tenants can do to navigate this changing landscape.

Understanding the Affordable Rent Act

The Affordable Rent Act extends the long-standing points system—previously limited to social housing—to include private-sector rentals scoring fewer than 187 points. Points are awarded based on factors such as surface area, location, energy label, and finish. Under the new rules, any dwelling with fewer than 187 points may not exceed a maximum rent of €1,158 per month for new tenants.

Key elements of the Act:

• Expansion of the points system to private rentals in the mid-segment
• Mandatory rent cap of €1,158 for homes under 187 points
• Protection applies to new tenancies as of July 1, 2024

The goal is to improve affordability in the heart of high-demand cities like Amsterdam, Utrecht, and The Hague. However, the immediate effect has been a rapid contraction of available stock.

Landlord Reactions and Market Implications

Many private landlords and property investors see the new rent ceiling as a threat to their returns. According to Djordy Seelman of HousingAnywhere, “It was already predicted; now we see it happening in practice.” Institutional firms and smaller owners alike are selling mid-rental apartments as soon as tenants move out, rather than accept lower monthly income.

Residential company Toon Mans reports that even larger apartments—those scoring above 187 points—are moving to the for-sale market. Landlords fear interim rent adjustments may still push their properties below the market average once energy labels expire. “As a landlord, you really have to be around 220 points if you want to be sure the home does not fall back to the average rent in the long term,” says Mans.

At Fris Vastgoed, which manages around 7,000 units for private and institutional investors, owner Hans Peter Fris notes a wave of disposals: “Almost all rental properties that cannot be raised above 187 points through improvements will be sold off. It depends on local market conditions—some areas like Delfzijl remain less affected—but the trend is clear.”

A handful of investors are taking the opposite approach, acquiring mid-priced units at depressed values in anticipation of future deregulation. They speculate that political pressure will force a rollback of rent controls in the near term.

City Snapshots: Amsterdam, Utrecht, The Hague

Amsterdam

On leading rental platforms Pararius and Funda, only two mid-segment flats remain:

• 50 m² for €1,150 per month
• 30 m² for €1,108 per month

Amsterdam’s woningcorporaties (social housing associations) list four additional mid-priced units, but these come with strict priority rules and income limits that disqualify many applicants.

Utrecht

Utrecht has fared no better, with just one mid-priced private rental available. Competition is fierce as renters flock to any opening.

The Hague

Commercial sites show three mid-segment offers in The Hague. One modest apartment at €1,048 per month received 235 enquiries, underscoring the intense demand.

Meanwhile, the low-rent segment—typically reserved for students and roommates—still has some rooms available, often on short-term contracts. The high-end market remains relatively stable, with around 500 unregulated listings in Amsterdam alone.

Consequences for Renters in the Netherlands

The depletion of mid-priced rentals has several knock-on effects:

1. Reduced Choice: Families and young professionals seeking long-term homes in central areas face scant options.
2. Higher Competition: Single apartments under €1,158 receive hundreds of viewings and applications.
3. Shift to Alternatives: Many renters turn to small rooms, temporary contracts, or the unregulated segment where rents exceed €1,158.
4. Income-Based Barriers: Social housing offers relief but imposes income ceilings and long waiting lists.

As a result, prospective tenants may find themselves compromising on location, size, or contract length just to secure decent accommodation.

Navigating the Changing Rental Market

While the mid-segment constricts, tenants can still improve their chances by adopting a proactive search strategy:

• Register on multiple platforms early and set up instant alerts for new listings.
• Broaden your search radius to emerging neighbourhoods with lower average rent.
• Consider furnished or shared apartments temporarily while pursuing long-term leases.
• Keep documentation ready—proof of income, references, and credit checks—to apply swiftly.
• Explore social housing options through your gemeente (municipality) website.

For landlords, upgrading energy labels and home finishes can raise your property’s point score above 187, allowing market-rate rents. Consult with a professional energy advisor to assess cost-effective improvements.

Looking Ahead: Policy and Investor Outlook

Investors and industry associations are lobbying the government to revisit the mid-segment regulations. Some predict a political compromise in the next 12–18 months, while others warn that shrinking supply will exacerbate affordability challenges.

In the meantime, regional differences may soften the blow. Smaller cities with more modest market rents can still comply with the points system without flipping properties to sales. The key for tenants and investors alike is to watch local policy developments and market indicators closely.

Whether you’re hunting for a new home or managing rental assets, staying informed is crucial as the Dutch rental landscape evolves.

For the easiest way to find rental listings in the Netherlands, visit Luntero.