Affordable Rent Act, what will change from 1 July 2025?
On 1 July 2024, the Affordable Rent Act came into force. This law aims to keep rents affordable, especially in the middle rental segment. The law requires private landlords to adhere to the maximum rent according to the housing rating system (WWS). The law applies to all leases concluded on or after 1 July 2024. Transitional law applies to previously concluded contracts in certain cases.
Additional changes will take effect from 1 July 2025. In this article, we list the main changes and the consequences of the transitional law.
New rental segments: from bifurcation to tripartition
Where until recently only two rental categories were used, social rent and deregulated rent, from the introduction of the Affordable Rent Act a new tripartition applies, based on the number of WWS points a property scores:
- Lower segment: up to 143 WWS points
- Maximum rent according to social rent policy (below the liberalisation threshold).
Mid-rent: from 144 to 186 WWS points
Under the Affordable Rent Act, these properties now also fall under the regulated rent regime.|
- Liberalised sector: from 187 WWS points
These homes fall outside the regulation regime and may be rented freely.
This graduated scale means that a larger part of the private rental market will come under supervision, especially in the middle rental segment. Also check this fact sheet from the central government.
What will change on 1 July 2025?
The law already came into force on 1 July 2024, but additional measures and provisions will apply from 1 July 2025:
1. Stricter enforcement for mid-rent properties
Municipalities will have more extensive powers to monitor rents in the mid-rent segment from 2025. They can impose sanctions when asking for excessive rents, including fines and periodic penalty payments.
2. Mandatory point count at start of lease
Landlords are obliged to give the tenant insight into the WWS point count when entering into a new lease. From 1 July 2025, this will be more strictly enforced. This promotes transparency and makes it easier for tenants to check their rights.
3. More protection for tenants in the middle segment
Until 2024, houses with 144-186 points fell outside the rent protection. Now these properties are also subject to a maximum rent. This protection will be legally and practically stronger from 1 July 2025 through improved enforcement.
Transitional law for existing leases
Transitional law applies to leases entered into before 1 July 2024. This entails the following:
- In principle, the Affordable Rent Act does not apply to existing contracts.
- However, existing tenants can still have it tested through the Rent Commission whether their rent is reasonable according to the WWS, as before.
- If the contract is extended or amended after 1 July 2024, for example when converting from temporary to permanent or when re-letting, the new regime may still apply.
- Municipalities may not simply take enforcement action on existing contracts unless there are clear abuses or constructions that circumvent the law.
In other words, sitting tenants retain their existing rights, but when contracts are changed, the new law may still apply.
Why this law?
The rental sector has come under severe pressure in recent years, especially in the middle segment. Tenants often paid high rents for properties that should actually cost much less according to the point system. The Affordable Rent Act restores the balance and also brings private rental properties in the middle rental segment under regulated protection.
Summary
From 1 July 2025, the next phase of the Affordable Rent Act will come into force. The biggest change is the introduction of the tripartite division of the rental market: low-segment, middle rental and liberalised. Municipalities will have more powers to control and enforce rents in the middle rental segment. A transitional arrangement applies to rental contracts dating from before 1 July 2024, but renewals or new contracts may still be subject to the law. Both tenants and landlords would be wise to prepare well for the new obligations and rights.
