The law maximizing rents in the private sector must be extended until May 1, 2027. Public Housing Minister de Jonge has written to the House of Representatives that he wants to prevent around 500,000 tenants from facing steep rent increases next year.

The law, which is an initiative of PvdA MP Nijboer, has been in effect since May 2021. The annual rent increase allowed is therefore limited to the average wage increase, plus 1 percent.

This is a temporary measure that expires on May 1, 2024. According to De Jonge, the assessment shows that protecting tenants is still necessary. However, many landlords increased rent above the legal limit in 2021 and 2022. This number even increased.

However, this did not lead to further action in the Rent Estimation Commission. “The explanation may be that the tenants do not seem to be sufficiently aware of the law,” the minister wrote in the letter. It is also possible that the tenants want to maintain a good relationship with the landlord and thus accept the increase.

De Jonge therefore wants to extend the law until 2027. By then, a new law must be in force that regulates the so-called “middle rent”. Many private sector homes fall into this category.

In the meantime, the Minister will consider how to better ensure that the temporary law is observed and how he can better compel landlords to comply with the cap on the rent increase.

Because of the fall of the government, the question is whether the introduction of the new government will continue. The House of Representatives will likely announce the controversial proposal in September and will not consider it until the election.