Rental homes in the Netherlands must have at least D energy rating by 2029

A draft law has been submitted in the Netherlands that would require all landlords to upgrade their rental properties to at least a D energy rating by 2029. Penalties could apply to landlords who still rent out homes with lower energy labels.

The Netherlands to phase out low energy labels for rental housing

Minister of Housing and Spatial Planning Elanor Boekholt-O’Sullivan recently submitted a draft regulation to the House of Representatives (Tweede Kamer) and Senate (Eerste Kamer) that would require rental homes to have a minimum energy performance rating. Under this regulation, all rental homes would need to have an energy label of at least D by January 1, 2029, and energy ratings of E, F and G would be phased out. 

“With this legal obligation, the cabinet aims to improve the quality of rental homes, give tenants more control over their energy bills, and offer a more comfortable home,” said the government press release. The measure would also move the Netherlands one step closer to reaching climate targets. 

Landlords who continue to rent out homes with these lower energy labels could face penalties. However, there would be a few exemptions, including historic buildings, temporary rental homes and small detached houses, such as houseboats.

Sustainability subsidy available for Dutch landlords

The regulation would not only benefit tenants, but also landlords, as improving the energy rating of a home ensures that it is “future-proof and increase[s] its value”. Owners of rental properties would also have “opportunities to recoup investments”.

There is a subsidy scheme already in place for the sustainability and maintenance of rental housing. Landlords could receive up to 15.000 euros per home to make a property more sustainable, by improving the energy rating, for example. This scheme is running until 2030.