According to the information provided by realtors associations NVM and VGM NL last week, free market rents increased by an average of 11.8% per square meter in the second quarter of 2022 compared to the same quarter of the previous year.
This is the largest increase in free market rents since associations began tracking quarterly figures in 2014. On average, new tenants paid €15.35 per square meter per month in the second quarter compared to €13.73 a year earlier.
Free market rents include all properties with a base rent above €763 per month, while the provinces with the highest sq.m. prices saw the lowest price increases of less than 10% in Noord-Holland, Zuid-Holland and Utrecht. The biggest rent increase was followed by Flevoland with 27.2% and Groningen with 21.6%.
At municipal level, the most significant rent increases were in Amstelveen (+41.1%), Almere (+31.7%) and Groningen (+21.8%). Three of the four largest Dutch cities saw below-average rent increases, even Rotterdam saw rent declines (-6.1% y). Free market rents rose 5.1% in Amsterdam and 7.4% in Utrecht. The Hague’s rent growth was equal to the national average. Haarlem was the only other municipality where rents fell (-5%).
“With these price increases, the rental market is becoming increasingly inaccessible,” said NVM president Onno Hoes. said. “In both the rental and landlord-occupied industries, the accessibility of a home is increasingly disappearing and the tenant is really falling into the cracks with this policy.”
According to Hoes, government measures such as purchase protection to keep investors out of the market and proposals to regulate the mid-leasing segment are hurting the rental industry. “There has been discussion for a while for a more nuanced package of measures that balances the playing field between leasing and buying. Unfortunately, this message has not yet fully reached the central government and the tenant is the victim.” used the phrase.
After falling for four consecutive quarters, the number of free market rentals finally increased quarterly. In the second quarter, there were 5.6% more registered transactions compared to the first quarter.
Sander Groot, Head of VGM NL, called it a good sign that more people are relocating. “However, the flow in the rental market is still sluggish. It would be good to create a good investment climate to create more supply in the rental sector. Municipalities, investors and other market stakeholders must work together to realize affordable newly built homes.” said.
According to De Groot, a larger free rental industry encourages flow in the market, among other benefits. “Despite the advantages of leasing, the government seems determined to promote home ownership and investment in rental real estate seems discouraged.” said.
The proportion of newly built homes in the free market increased significantly in the second quarter, by 25%, compared to previous quarters.