House rents up by 2 percent on average

© Hollandse Hoogte / Peter Hilz
In July 2023, housing rental prices in the Netherlands were on average 2.0 percent higher than in the same month last year, when the increase was 3.0 percent. Rents of social housing increased by 0.1 percent among housing corporations and by 3.7 percent among other landlords, on average. The increase amounted to 4.5 percent in the private sector. Statistics Netherlands (CBS) reports this on the basis of newly released figures.

Differences in permitted rent change

The maximum permitted rent increase depends on the type of rental agreement (regulated or liberalised) and the level of the tenant's income. Low-income households are eligible for a rent reduction in 2023 under certain conditions. Read more about the maximum rent increase and rent reduction for low-income households on the English version of the Dutch government website.

Less steep rise in social housing rents

Almost 70 percent of all rented properties are owned by housing corporations. As of 1 July 2023, social sector rents among housing corporations rose by 0.1 percent. The increase was 2.6 percent one year previously.

Social housing rents among other landlords, on the other hand, rose more on average compared to one year previously: 3.7 percent in 2023, against 2.8 percent in 2022.

Private sector rents also went up more on average this year: 4.5 percent, up from 3.8 percent in 2022. Just as social sector dwellings, private sector dwellings may be owned by either housing corporations or other landlords. Whether a rented property belongs to the private sector is determined by the net rental price at the start of the tenancy agreement. If this price exceeds the so-called liberalisation threshold, it is considered to be a private sector dwelling. In case of a lower rent, it is a social sector dwelling. In 2023, the threshold was set at a net rental price of 808.06 euros.

Sharper rent increase during a change of tenant

When a rental dwelling has a change of tenant, different rules apply and the rent is usually increased more. On average, rents increased by 10.9 percent when there was a tenancy change, which is more than in 2022 (9.7 percent). Since 2014, rents of dwellings with a change of tenant have not risen as much as in 2023.

Those who rent from a social housing landlord can qualify for an income-dependent rent reduction under certain conditions. This reduction has a dampening effect on rent increases. If tenancy changes are not taken into account, rents among social housing landlords were down by 0.1 per cent. Among other landlords, rents of dwellings without tenancy changes rose by 3.2 percent. This increase is higher than in 2022.

Highest increase in Amsterdam

Among the four large cities, Amsterdam saw the highest rent increase in 2023, at 2.8 percent. Utrecht recorded the lowest increase: 2.4 percent. Tenancy changes had the smallest effect on rent development here as well, namely 0.6 percent.

At the provincial level, rents rose most sharply on average in the province of Fryslân: by 2.4 percent, when taking into account changes of tenants. Tenancy changes had an effect of 0.5 percent here.

In Overijssel and Noord-Brabant, tenancy changes had the largest effect on rent increases compared to other provinces, namely 0.9 percent.
Flevoland showed the lowest rent increase at 1.2 percent. Half of the increase in this province (0.6 percent) was due to a change of tenant.

This news release refers to the net rental price. This means the rent of the property without service charges or other costs. Heating costs or costs for lighting in common areas are examples of costs that the landlord passes on to tenants and are not part of the net rent development.

Sources