Two Types of Rent Caps in the Netherlands
The concept of a 'rent cap' (huurplafond) manifests in two distinct ways in the Dutch rental market, and it's essential to understand both. 1. The Price Cap for Regulated Housing: This is the most significant form of rent control. For properties in the social or regulated sector (sociale huur), the government sets a maximum legal rent (maximale huurprijs) that a landlord is allowed to charge. This cap is not an arbitrary number; it is meticulously calculated based on the property's quality, size, and features using a points system called the woningwaarderingsstelsel (WWS). 2. The Annual Increase Cap: This is a different type of cap that applies to all rental properties, including those in the expensive free sector (vrije sector). The government sets a legal maximum percentage by which the rent can be increased each year. This prevents landlords from imposing sudden, exorbitant rent hikes on sitting tenants. As of 2025, this annual cap for the free sector is inflation + 1%.
The Points System ('Woningwaarderingsstelsel' - WWS)
The heart of the Dutch rent cap for the regulated sector is the WWS. This system awards points to a property based on a detailed set of criteria: the number of square meters of each room, the quality of the kitchen and bathroom, the energy efficiency rating (energielabel), and the official property value (WOZ-waarde). The total number of points corresponds to a specific maximum monthly rent price. A landlord cannot legally charge more than this amount. A tenant in the regulated sector can, at any time, ask the Huurcommissie (Rent Tribunal) to assess whether their rent exceeds this legal cap. If it does, the Huurcommissie can force the landlord to lower the rent and even order a refund of overpaid amounts.