Netherlands Sees Surge in Private Rental Homes Despite Looming Rent Regulation

Discover how the private rental sector in the Netherlands has grown by 67,000 homes in two years, reaching almost 1.2 million, amidst concerns of impending rent regulation.

Despite concerns about a decrease in the supply of private rental units due to the looming Affordable Rent Act, recent data from Statistics Netherlands (CBS) and the Land Registry reveal that the number of homes in the private rental sector has actually increased by approximately 67,000 in the past two years, reaching almost 1.2 million.

This growth can be attributed to various factors such as new construction, transformations of existing buildings, and the division of homes. According to CBS, private landlords acquired around 78,000 new homes between 2021 and 2023, accounting for 40 percent of all new homes added to the Dutch housing stock during that period.

The private rental sector is diverse, with approximately 432,000 landlords, the majority of whom are natural persons. While concerns have been raised about the impact of the Affordable Rent Act on the profitability of private rentals, CBS's data indicates that housing construction has offset the sell-off of rental properties in the past two years.

However, worries persist as fewer construction permits are being issued, raising questions about the future supply of private rental units in the face of impending rent regulation.

The increase in the number of homes in the private rental sector despite the sell-off prompted by the looming rent regulation highlights the resilience of the housing market. While challenges remain, the sector continues to evolve to meet the changing needs of tenants and landlords alike.