Real estate investors have placed their hopes on the Senate now that a majority in the House of Representatives has voted in favor of the regulation of mid-priced rents. “There is heavy interference with property rights,” says public affairs director Kavish Partiman of Vastgoed Belang. The interest group is considering legal action if the Senate also agrees to the law. ‘The route to court is not excluded for homeowners, there is a solid basis for that.’
Real estate investors pin hopes on Senate, threaten legal action
3 min 16 sec
The legislation of outgoing Minister Hugo de Jonge (Housing) ensures that rental properties must conform to a points system, whereby up to 186 points the rent may be a maximum of 1,123 euros for existing buildings. For new construction, a maximum rental rate of 1,235 euros applies.
“If several tens of thousands of homes return to affordable owner-occupied housing, that is actually not so much of a problem”
Partiman is now pinning his hopes on the Senate, because according to Vastgoed Belang there are legal issues that make the legislation irresponsible. ‘The proposal has four objectives, but according to research we have conducted, these objectives are not achieved with this proposal.’ For example, the law must better protect tenants against high rents, bring more mid-rental properties onto the market, maintain investments in mid-rental properties and promote sustainability.
Also read | Much-discussed rental law adopted by the House of Representatives: ‘Good balance found’
Possible rent increases
However, these things are not being realized, according to the interest group of housing investors. For example, it states that rents in the private sector will actually rise because fewer rental properties will come onto the market, because renting would become less attractive due to the regulation. “I think it is the task of the Senate to properly test this, because this concerns 300,000 homes that are affected by this law,” Partiman emphasizes.
De Jonge is not concerned about fewer rental properties
5 min 56 sec
However, outgoing Minister De Jonge points out that the wishes of the landlords have also been taken into account. For example, a special new-build surcharge has been added, so that new-build homes that fall under the regulations can still generate some extra money.
First room
Yet De Jonge is not concerned about landlords selling their homes. ‘If several tens of thousands of homes return to affordable owner-occupied housing, that is actually not so much a problem and rather a solution to a problem.’
Also read | Hugo de Jonge can learn from Milei: ‘Overregulation causes more problems’
In the House of Representatives there was a large majority in favor of De Jonge’s rental plans, partly due to the support of the PVV. However, there was a lot of criticism from the VVD and BBB. But if the same parties that voted for the plans in the House of Representatives also do so in the Senate, the law will be definitively adopted. “I hope to achieve the same majority in the Senate,” De Jonge concludes.
Legal proceedings
Partiman has no such hope. ‘We hope that the Senate will make a wiser decision.’ He also cites criticism that the Council of State had of the plans. “The VVD and BBB have tried to obtain another review from the Council of State, which the Council of State itself has also requested,” says Partiman. If the Senate does vote in favor of the law, Vastgoed Belang does not rule out going to court. “The route to court is not excluded for homeowners, there is a solid basis for this,” says Partiman.
You will hear more about what the new regulations mean for the real estate sector in this episode Real Estate Wanted.
