Netherlands To Expand Point-Based System To Determine Housing Rent

The Netherlands is planning to expand its point-based housing system in an effort to protect tenants and respond to the rapidly rising housing rents.

Rental properties in the country come under two separate heads: private and social housing.

Points are allocated to the houses based on several variables depending on their size, age, number of bedrooms, kitchen, bathroom, garden, and energy efficiency.

Private houses have a high score and are part of the private sector. Normally, their rent tops €737. Landlords set the rent in line with the free-market principles and there is no such thing as a ceiling price.

For social housing, the rents are determined by the government in line with the point-based system.

The would-be tenants must live around the same location and they must have a legitimate reason to apply for such houses, such as work, family, or school. Several factors such as income and family size are also taken into consideration.

To combat the emerging crisis with regard to the rental residences and rising rents, the government plans to expand the content of the scoring system.

According to the new system, the mid and low-income group will be better protected and they will pay a reasonable amount of rent. Notably, the social housing limit is to be increased to €1,250

Furthermore, the government is planning to build more settlements for the low- and middle-income group and about 40% of the houses to be constructed will appeal to this group. Also, the government aims to strengthen the position of those who will own a house for the first time.

*Writing by Ali Murat Alhas -