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Tenants in free sector pay more than homeowners
22 March 2013, by Mark McDaidTenants renting in the free housing sector encounter higher living costs than even owner-occupiers, the Netherlands Housing Research survey has revealed.
Free sector
There are more than 335.000 households renting in the free sector, in properties with a monthly rent above the liberalisation limit of 664,66 euros a month. The average gross housing costs (that is, rent after deduction of rental allowance) is 850 euros a month, some 80 euros higher than owner-occupied dwellings, despite the fact that the properties owned by the latter are more expensive.
However, the ratio of owner-occupied homes and tenant-occupied homes has stagnated for the first time since 1986, with 59 percent of the 7,1 million households in the Netherlands being occupied by the owner. However, with an agreement to reform the housing sector reached just last month, there is hope that the drive towards home-ownership will be rejuvenated.
Social housing
The total number of tenants living in rent-controlled housing stands at 2,6 million, despite the fact that thousands of houses have recently found themselves within the free sector thanks to new rules introduced towards the end of last year. However, the survey itself was only conducted between September of 2011 and May of 2012, suggesting that this figure may be higher than in reality.
Photo by Flickr user Ai@ce
Eighty-two percent of these rental-controlled houses are owned by housing corporations and the remainder are privately owned. Tenants in privately owned houses within the social sector pay an average of 30 euros less than their counterparts who rent from a housing corporation, despite the fact that the privately owned houses are generally more valuable.
Survey
The survey, conducted in joint co-operation between the Ministry of the Interior and Kingdom Relations and Statistics Netherlands, will be presented in full on April 11 this year.
Source: CBS
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"Tenants renting in the free housing sector encounter higher living costs than even owner-occupiers,"
Well of course! That's why people buy houses, to save money.
If it was cheaper to rent, nobody would buy a house.
It's beacuse rents asked in the free sector are obscene - greedy dutch
The difference between renting in the free sector and buying is huge, especially in Amsterdam. When I first moved here I was paying 1200/month for an apartment in Slotervaart. Realising quickly I was being severley ripped off, I decided to buy. My mortgage now on an apartment in Centrum is 800/month.
In Dutch society buying a property, is only relatively recent - historically they have always rented, & that generally in 'social housing' - in the last 30 years, the dutch have been catching up, with say the UK, when buying of a property became possible was encouraged after WWII. Laws here have changed, making it easier, possible & encouraged, but with it, it has encouraged people to take advantage - especially in the free sector, to rip off - people looking for rented accomodation. There is, & always has been, an enourmous problem with 'doorverhuren', where often social housing is rented to a third party, often at a scandelous premium - 2 or 3 times the 'going rate' - I don't know the answer or solution either, but there are some very greedy people out there!
About the Author
Mark McDaid