The promised rent freeze for social housing from 1 July 2025 seems increasingly unlikely. Although coalition parties PVV, VVD, NSC and BBB presented the plan to not raise rents for two years during the spring budget negotiations last month, the proposal is facing strong criticism and practical objections.
Strong resistance in politics and the sector
During a parliamentary debate, criticism sounded from almost all corners. Opponents fear that lower rental income will make housing associations less able to invest in new construction and sustainability. Minister Mona Keijzer (BBB), responsible for housing, shares those concerns. She warns that the construction of more than 150.000 houses - including 85.000 social housing units - is at risk. The industry body Aedes is also going to court to stop the plan.
Critics say the rent freeze only saves tenants € 16 to € 25 a month, while it puts structural pressure on the housing market. Budget institute Nibud argues that most tenants can cope with the regular rent increase, thanks in part to increased incomes. Moreover, a rent freeze could lead to larger rent increases in the future.
No coverage, little time
Structural compensation for housing associations would cost billions annually. That money has not yet been found. Moreover, private landlords are excluded from the scheme, which many parties say is unfair. The bill still has to pass the Council of State and through both the Lower and Upper Houses. The coalition does not have a majority in the Upper House, which makes approval unlikely.
Conclusion
The rent freeze from 1 July 2025 is highly uncertain. Without a political breakthrough and financial cover, the proposal seems to be stranded. For housing corporations and house seekers, the main threat is longer waiting times and less investment in affordable, sustainable housing.
