Problems for middle-income earners: worsening shortages in the rental and housing market.

Rental supply in the private sector dwindles

The introduction of the Affordable Rent Act has led to a significant decrease in affordable rental properties in the private sector. Two and a half years ago, there were over 2,600 available properties with rents below €1,500, but as of July 1, that number has dropped to less than 1,000. Meanwhile, the number of rental properties with rents exceeding €1,500 is on the rise.

This decline is linked to the Affordable Rent Act, which came into effect on July 1, 2024. Many landlords are opting to sell their properties instead of renting them at lower prices, resulting in a structural reduction in the rental market supply. It is estimated that this affects approximately 300,000 properties, nearly half of the total supply in the private sector. These are mostly high-quality properties that were previously accessible to middle-income tenants but are now permanently disappearing from the rental market.

Middle-income tenants are under pressure

Jasper de Groot points out that the number of affordable rental properties under €1,500 is decreasing due to the mass sale of rental properties by private investors. A recent study by NVM shows that many of these properties, often small apartments with relatively good energy ratings, are being sold quickly by landlords unwilling to rent at a loss.

De Groot explains that rental properties scoring more than 186 points according to the Housing Valuation System (WWS) are not subject to the Affordable Rent Act. As a result, rents for these properties can be increased due to the scarcity and high demand, creating a large gap between the social housing sector and the private sector, where rents are freely negotiated between tenant and landlord.

Limited access to the housing market

The current situation is particularly problematic for middle-income tenants. Their options in the rental market are diminishing, and they often cannot afford to buy the properties that are being sold. With an average selling price of €360,000 for vacated rental properties, purchasing these homes requires a gross annual salary of at least €80,000. This leaves middle-income earners stuck between an inaccessible rental market and an unaffordable housing market.

About Rentumo

Rentumo is the solution for anyone looking to optimize their search for rental properties. With advanced search filters, real-time updates, and a wide range of listings, Rentumo helps you find the perfect rental home quickly and efficiently, regardless of your budget or preferences. Rentumo ensures that you always have access to the most current and relevant property information.