Rent increase 2.5 percent in 2019

The average rent increase was somewhat higher than in July 2018 (2.3 percent) and has now almost reached the average over the past decade (2.6 percent).

Rent increase related to consumer price inflation

An important cause of the higher rent increase are the more sharply rising consumer prices in 2018. For rent control housing, the maximum increase is equal to the consumer price inflation rate over the previous year plus an income-related benefit. In 2019 the maximum rent increase amounts to 4.1 or 5.6 percent, depending on the tenant’s income. For housing corporations the extra rule applies that the increase in total rent revenues over the calendar year should be limited to a certain amount. The maximum revenue increase for 2019 is 2.6 percent.

For social housing owned by housing corporations, the average rent increase as of 1 July this year is also higher than last year: 2.0 percent this year against 1.7 percent in 2018. This is partly due to a higher limit on rent increase, but also to a smaller share of housing with rents reduced or unchanged. This year, that share is 14.3 percent of the housing owned by corporations, against 18.6 percent in 2018.

Rent increases in the private sector as well were higher this year: 3.3 percent in 2019, against 3.1 percent in 2018. The rent increase in social housing owned by other agencies stood at 3.3 percent in both years.

Lower rent increase during tenant changes than in 2018

This year, rental price increases during changes in tenancy were not as steep as in 2018. The average increase during tenant changes stood at 8.2 percent this year. This was still 9.6 percent last year. Private landlords are not bound to a maximum increase when a new tenant moves into their dwelling. For existing tenants, the average rent increase stood at 2.1 percent.

Highest rent increases in Amsterdam and Rotterdam

Amsterdam has seen the highest rent increases of the country for several years on end. This year the increase is 3.4 percent. Just below that is Rotterdam with 3.2 percent. The Hague and Utrecht recorded slower rental growth: by 2.5 and 2.4 percent, respectively.

The relatively high increases in Amsterdam and Rotterdam contributed to the provinces of Noord-Holland and Zuid-Holland seeing the highest rental growth rates. The province of Drenthe has had the lowest rental growth rate in the Netherlands for years; this year, 1.9 percent. This is still higher than the 1.1 percent rent increase recorded in that province in 2017 and 2018.

Regional disparities are mainly caused by different rates of increase during tenant changes. The impact of the higher increase during tenant changes is 0.8 percentage point in Rotterdam, but is 0.2  percentage point in The Hague and 0.1 percentage point in Drenthe province.