Greetings, renters and housing enthusiasts! We’ve got the inside scoop on the upcoming changes to the permitted annual rent increase in the private sector. It’s time to break it down in a style that’s easy to digest.
Maximum Annual Increase: 5.5% Starting January 1, 2024
According to the website of Rijksoverheid, as of January 1, 2024, a new era in renting begins with a maximum permitted annual rent increase of 5.5%. Here’s the breakdown: 4.5% accounts for inflation (CPI), and an additional 1 percentage point is added to this baseline. This rule applies to various housing options in the private sector, including independent homes, studios, apartments, and even moorings for houseboats. Stay tuned for the announcement of the final percentage for regulated rents from July 1, 2024, later this December.
Calculation Matters
The calculation of the maximum rent increase is a nuanced process. In the free segment, the lowest percentage between wage development and inflation determines the cap. Landlords have the option to add 1% to the lowest percentage. For context, inflation (CPI) from December 2022 to December 2023 stands at 4.5%, while the collective labor agreement wage development during the same period is 5.8%. Consequently, the lower inflation rate is applied for the 2024 calculation.
Timing is Everything
When tenants in the private sector experience the annual rent increase depends on the start date of their lease. The 5.5% cap is effective from January 1, 2024, to May 1, 2024. Come May 1, 2024, the law governing this cap is set to expire. To address concerns about protecting tenants from soaring rent hikes after May 1, Minister Hugo de Jonge is diligently working on a proposal. Without an extension of the maximum, tenants in the private sector will no longer enjoy protection after May 1, 2024.
Stay tuned for updates as we navigate these changes together, ensuring you’re armed with the knowledge to make informed decisions in the evolving rental landscape. Here’s to a well-informed and rent-savvy 2024!
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