Dutch Minister Proposes Easing Rent Caps to Boost Housing Supply

Proposed Relaxation of Rent Cap Rules to Increase Housing Supply

The Dutch rental market has faced persistent pressure from rising demand and limited supply. In response, Housing Minister Elanor Boekholt-O’Sullivan announced a set of reforms designed to make mid-rent properties more attractive for landlords and investors. By tweaking the national rent points system and introducing flexible contract options, the government aims to retain small landlords in the sector and unlock additional homes for tenants across the Netherlands.

Understanding the Dutch Rent Points System

The Netherlands uses a points-based rent assessment (woningwaarderingsstelsel) to classify properties into social, regulated mid-rent, or liberalised segments. Key factors include:

• WOZ value: the municipal property valuation (waardering onroerende zaken) used for local tax and rental calculations.
• Living area and facilities: size, energy performance, presence of a garden or balcony, and other amenities.
• Deductions and supplements: currently, one third of the WOZ value is included in the points calculation, and landlords lose five points if a property lacks outdoor space.

Properties scoring up to 142 points fall under regulated mid-rent, keeping maximum rents affordable. However, falling returns have prompted many small landlords to exit the market, shrinking the private rental stock.

Key Measures Announced by Minister Boekholt-O’Sullivan

In a briefing to parliament¹, the minister outlined four main measures, expected to take effect by January 1, 2027, pending legislative approval:

1. Full Valuation Rent Supplement

   • Rather than using only one third of the WOZ value, landlords can now add a price supplement reflecting the full WOZ valuation. This adjustment keeps properties within the regulated mid-rent range while boosting achievable rents.

2. Removal of Outdoor Space Deduction

   • The existing five-point penalty for homes without a garden, balcony, or terrace will be scrapped. In dense urban areas, providing private outdoor space is often impossible, so this change improves the viability of smaller city apartments.

3. Higher Rents for Small Listed Buildings

   • Owners of small monuments (rijksmonumenten) or heritage-listed properties can charge higher rents based on their WOZ value. This acknowledges the extra costs of maintaining historic homes and encourages their preservation in the private market.

4. Expanded Temporary Student Contracts

   • Until now, only students relocating to study out of town could access temporary contracts. The new rule opens fixed-term leases to all students, preventing local students from being unfairly disadvantaged in competitive markets such as Utrecht and Groningen.

In parallel, the government will extend the current 10% rental premium on newly built developments—from 20 to 24 years—to further sweeten the deal for property investors and housing corporations (woningcorporaties).

Impact on Landlords and the Investment Climate

By enhancing potential returns, these reforms aim to:

• Retain small landlords: Higher rent ceilings reduce the incentive to sell small portfolios, maintaining diversity in the rental stock.
• Attract new investment: Extended developer premiums on new-build rentals improve long-term yield forecasts.
• Preserve heritage housing: Financial recognition for upkeep of listed properties ensures historic homes remain viable rental assets.

Minister Boekholt-O’Sullivan emphasised that “improving the investment climate for private landlords and housing corporations is essential to realise sufficient affordable housing.”

Potential Benefits and Risks for Tenants

Benefits

• More rental supply: With landlords less inclined to sell, the overall number of available homes should rise.
• Greater contract flexibility: Expanded temporary leases help match student housing needs to academic cycles.

Risks

• Rising rents in mid-rent sector: Tenants in regulated mid-rent homes may see higher caps, reducing the gap between mid- and liberalised rents.
• Regional disparities: In hotspots like Amsterdam and The Hague, landlords may leverage higher WOZ valuations to push rents upward.

Tenants should continue checking eligibility for huurtoeslag (rental allowance) to offset any rent increases and explore neighbourhood options with competitive pricing.

Next Steps and Timeline

These proposals must navigate both the House of Representatives and the Senate before becoming law. Key dates include:

• Debate stage: Late 2026 sessions in the Tweede Kamer.
• Senate vote: Early 2027, ahead of the intended January 1 implementation.
• Guidance for landlords: The government will release detailed calculators and FAQs to aid compliance with the revised points system.

Stakeholders—landlords, property developers, tenants’ unions, and municipalities—will be invited to consult on the technical aspects of the reforms.

Conclusion

The planned relaxation of rent cap rules signals a strategic shift toward balancing tenant affordability and investor confidence. By aligning rent points more closely with real market values and modern living conditions, the government seeks to expand rental stock while preserving protective measures.

For tenants and landlords alike, staying informed about these changes is vital. Whether you’re searching for a first rental, aiming to upgrade, or managing a portfolio, understanding the evolving points system will help you plan effectively.

Ready to explore the latest rental listings under the new regulations? Head over to Luntero for the easiest way to find your next home in the Netherlands.

Footnotes

1. Ministry of the Interior and Kingdom Relations, “Kamerbrief toelichting op de maatregelen optimalisatie huurreguleringen en ontwikkelingen in de huursector,” April 20, 2026, https://www.rijksoverheid.nl/ministeries/ministerie-van-binnenlandse-zaken-en-koninkrijksrelaties/documenten/kamerstukken/2026/04/20/kamerbrieftoelichtingopdemaatregelenoptimalisatiehuurreguleringenontwikkelingenindehuursector ↩