New Rental Regulations Under Review

In 2023 and 2024, housing rental laws were significantly tightened. Minister Elanor Boekholt-O’Sullivan now wants to relax the rules somewhat, as her predecessor, former Minister Mona Keijzer, had already indicated in 2025. She presented her plans in April 2026. The minister has indicated that she would prefer to implement the changes as early as January 1, 2027. In this article, I will explain the plans so you can determine if any of them may be relevant to your situation.

Strict rules lead to a decline in supply

The Good Landlord Act has significantly tightened the rules for landlords, who are now expected to demonstrate a high degree of professionalism. Whereas previously it was standard practice to rent for a fixed term of up to two years, fixed-term leases have once again become the norm under the Fixed-Term Lease Act. At the same time, the capping of rents in the mid-range segment and tax regulations have limited the income landlords can expect from renting.

For many private landlords, these strict rules are actually too burdensome. We also see in our practice that things sometimes go wrong. It happens that a private landlord was insufficiently aware of the new legislation and, as a result, is sometimes even unable to move back into their own home after a stay abroad. Such a situation results in a significant financial loss. As a result, the rules for affordable rent appear to be leading to a significant wave of sales, causing the supply to decline, particularly in the mid-range segment and in the major cities of our country.

The Proposed Measures

The minister is proposing a large number of minor adjustments to various regulations. The minister plans to adjust the Housing Valuation System Rules (WWS, the points system) so that the WOZ value carries greater weight in the points system, allowing rents for homes with a high WOZ value (e.g., homes in Amsterdam) to increase in more cases. Currently, the WOZ value accounts for a maximum of 33% of the total points.

The idea is that this limit remains in place for determining whether the property falls below or above the point threshold for the private sector (the most contentious issue). The relaxation would allow landlords to assign more points based on a high WOZ value when calculating the reasonable rent. This could amount to an increase of just under €100 per month. The same reasoning should apply to homes in small national monuments. She also wants to ensure that the lack of outdoor space (such as a balcony or garden) no longer results in a lower maximum rent. The penalty points for this would be eliminated. The existing rule that a 10% surcharge applies to the maximum WWS rent for new-build homes will also be extended.

The minister wants to relax the rules regarding shared housing and subletting. She indicates that she views the Utrecht model as an example, where three people who do not form a shared household can share a home without a permit. Furthermore, she says she also wants to expand the possibility of entering into temporary lease agreements with students. Currently, this is only allowed if the student comes from another city; she wants to scrap that rule.

The government also intends to address the transfer tax on homes purchased for rental purposes. Currently, a high rate of 8 percent is applied. That measure is not expected to be implemented for several more years.

A difficult proposition

According to Minister Boekholt-O’Sullivan, the rules are intended to encourage private homeowners not to put their rental properties up for sale, in order to limit the disappearance of supply. But the problem landlords face is that mid-range rentals in major cities simply aren’t profitable. This is despite the fact that property management requires increasing attention, partly due to complex and constantly changing regulations.

Renting out a home with a market value of €500,000 for the maximum WWS monthly rent of €1,228.07 (186 points) results in a gross annual return of approximately 2.95 percent. That is a gross yield percentage that is on par with the interest (yield) on Dutch government bonds.

However, there are also costs involved. The property needs to be maintained, the first month’s rent goes to the real estate agent, mortgage interest must be paid, and there is often a service fee from the property manager as well. Costs and mortgage interest rates have risen significantly in recent years, meaning a negative return is certainly no longer unthinkable.

This return scenario, combined with the fact that landlords are now required to commit to leases for an indefinite period as standard, makes the decision to rent out residential property a difficult proposition for private investors. Tenants are generally well aware of the new rules as well.

Circumventing these rules, for example, by agreeing to a higher rent than permitted, or by including a fixed-term clause in the contract, is therefore strongly discouraged. The tenant can challenge both issues after accepting the lease, after which it becomes very difficult for the landlord to terminate the agreement.

A sale is therefore often more lucrative and less risky. This is especially true for homes in the lower and middle segments. The current trend is therefore understandable. Only time will tell whether the proposed measures will bring about sufficient change to reverse this trend.

Relevant to you? Call us

Are you a landlord and would you like to discuss whether the new measures could benefit you? Or do you have questions regarding your lease agreement(s) or a looming dispute following this article? Are you planning to rent out a property and would you like to verify that you’re doing it correctly? Then call us immediately with no obligation, or fill out our contact form. One of our attorneys with expertise in tenancy law will be happy to assist you!