Market Reports

The housing market is in need of a major overhaul

Block of houses viewed from above

New and affordable housing is needed

Residential investment market at a turning point

The Dutch housing market has been under close scrutiny for many years now. A shortage of housing is pushing up prices, especially in the big cities. This is in turn squeezing affordability, including for residents in crucial professions. However, it has proved extremely difficult to create new housing stock and meet demand owing to a number of different factors. In short, the housing sector is in need of a major overhaul - in both the rental and owner-occupier segments of the market. Yet the question is: how do we set this change in motion without causing even greater turbulence?

New rent regulation is causing turbulence

Rental homes in the mid-market segment need to be affordable for their target group: middle incomes. This is why the current Dutch government plans to regulate rents in this segment. It may well work but will also have a huge negative impact. The investment climate is already deteriorating, while investors are indispensable to meeting the enormous future demand. Moreover, the already high rents in the unregulated segment will rise even further. In this report we conduct a detailed review of the new legislation and weigh up the different effects it will have.

How effective will the rent regulation be?

Now that the contours of the new rent regulation are becoming clear, we analyse the pros and cons. And this analysis gives rise to concerns.

Neighborhood with a block of houses