Despite the tight housing market, insurance company ASR will not build more rental properties. Investors have become reluctant to invest their money in rental properties since the new rental law was passed, ASR said when it published figures for the first six months of this year.

Due to the Affordable Rent Act, which came into force on 1 July, landlords are no longer allowed to set the rent themselves for homes that fall under the points system. Rental properties with between 144 and 186 rental points based on, among other things, the surface area, the WOZ value and the energy mark may now have a rent of only between 880 and 1,158 euros (1,274 euros for new construction).

Earlier this week, it emerged that private landlords sold more homes for this reason in the last quarter, the Land Registry reported. Large landlords are not planning to do so at the moment, they recently told NOS.

ASR, one of the largest insurance companies in the Netherlands, has around 26,000 rental properties. Of these, 15,000 are self-owned and 11,000 are held in a fund with other major investors. When asked, the insurance company said it is not currently selling homes. ASR also confirms that it will continue to invest in the homes it currently owns.

“Under the new affordable rent law, we are currently on hold,” a company spokesperson said. “We see that attracting new capital requires more effort.”

ASR does not want to say whether the pause in new rental homes is temporary: “We have always stressed that institutional investors must be able to rely on a reliable and attractive investment climate in order to continue investing in medium-term rental properties.”

Since the acquisition of Aegon, about a year and a half ago, ASR has performed well. In the first half of 2024, earnings increased by €217 million to €677 million. The company earned more from pensions and non-life insurance, among other things. The latter is mainly due to the absence of major storms and water damage in the first half of this year.

Meanwhile, ASR is concerned about the government’s climate policy. The uncertainty over whether to insure damage from flooding of major rivers and lakes with government assistance is leading to long-term uncertainty, according to ASR CEO Jos Baeten. “The risks are still not disclosed and clients have no clarity as to whether a water disaster like the one in Limburg in 2021 will happen again.”

Insurance company Achmea has also previously indicated it wants more clarity on claims settlements in the event of natural disasters. “Insurers know exactly what is expected of them when a small river floods,” Achmea said during a half-year figures presentation last week. “But that is not clear for large rivers, because that is not insurable.”