The impact of new regulations on housebuilding
The Affordable Housing Programme that was presented in May 2022 by the Minister of Public Housing, Spatial Planning and the Environment states that the Dutch housing market must be made as affordable and sustainable as possible, as quickly as possible. Most of the measures described in the programme are directed specifically at the Dutch rental sector.
For instance, the expansion of the regulated rental market by setting the mid-priced monthly rental limit based on the housing valuation system* (Woningwaarderingsstelsel (WWS)) to between €763.47 and €1,000 or €1,250 (depending on the exact implementation) is intended to increase the number of homes in the regulated rental sector. The WWS is a points system by which the rental value of residential property is assessed.
The programme is expected to have a profound impact on supply within the Dutch rental market. Following its implementation, many rental houses currently in the unregulated sector would fall into the newly regulated sector. Exactly how many houses will be affected, and how great the difference would be between their current rental price and their maximum rental price after the introduction of the new regulations, will depend strongly on the location. Location, after all, determines a large proportion of the market rental value. This raises an important question: where can we expect the greatest impact to follow from the expansion of the regulated rental sector? And will this achieve the intended aim of facilitating people’s search for the rental accommodation they desire?
Location, after all, determines a large proportion of the market rental value.
This raises an important question: where can we expect the greatest impact to follow from the expansion of the regulated rental sector? And will this achieve the intended aim of facilitating people’s search for the rental accommodation they desire?
The current WWS points system in brief
A dwelling is accorded a WWS point score based on a number of elements. If it scores 142 points or lower, then the dwelling currently falls into the regulated sector (‘social housing’). The higher the score, the higher the allowable rental price. For dwellings with a point score of 143 or more, the landlord is at liberty to set any rental price. The total point score is determined by several elements, including the following:
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