Social rent increases on average by 2 percent, sometimes more than wealthier tenants

Social rent increases on average by 2 percent, sometimes more than wealthier tenants

Housing associations will increase rents for their social housing units by an average of 2 percent, effective July 1. But some housing associations are also implementing an income-related rent increase this year that will be higher. This is allowed for renters of a certain income. The additional rent increase for those on higher incomes is not included in the average of 2 percent.

Because of Corona, the Cabinet was not allowed to increase social rents at all last year. This year, the cap could reach 2.3 percent for low-income earners. This is the same rate of inflation between December 2020 and November 2021. According to the umbrella organization Aedes Housing Associations, 63 percent of homes are still below that.

“The rapid rise in inflation that started at the end of 2021 has little or no effect on increasing rents,” says Eddis. The association says housing associations often stay below the cap, precisely because of the current high inflation. In addition, 30 percent of housing associations are implementing a rent freeze for homes that carry a low-energy card. At the end of 2021, the average rent for condominiums was €563.

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So the Cabinet has allowed housing associations to raise additional rents this year for people with higher incomes, the so-called income-related rent increase. A maximum of 50 or 100 euros.

One-person households with a total income of €47,948 or more may receive a maximum rent increase of €50. If they earn more than €56,527, that means €100. In multi-person homes, the rent can be increased by €50 if they earn more than €55,486 and €100 if that is more than €75,369.

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How did it happen that there are now so few social rental homes? Watch this explainer from NOS on 3:

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