Rent increase 2020 and 2021 income-related

In 2022 there will be two income limits for an income-related rent increase. The maximum rent increase rose to 5.1 percent in 2020, and in 2021, skewed residents could receive an even higher rent. The government wants more market-based rents and wants people who live on an uneven basis, that is, pay little rent in relation to their income, to pay significantly more rent. An income-related rent, which will also increase monthly costs in the rental sector. For some, this makes buying a house more attractive than renting, but corporations have not received tax information from everyone. In the social rental sector, the maximum rent and rent liberalization limit in 2020 is 737, in 2022 this will be 763.47. In 2022, the rent for crooked residents will increase sharply, but things look even worse for 2023. The rental agreement and the rent allowance limits the net rent increase for high rents and low incomes.

Rent increase 2020, 2021 and 2022

  • Maximum rent increase based on income, annual rent increase
  • Crooked living is a problem
  • Rent increase made income-related
  • So does the maximum rental price also depend on income?
  • The household income from two years ago counts for the calculation of the rent increase
  • Rent increase according to rental amount approach and quality of the home
  • Rent increase depending on the quality of the home
  • Rent liberalization limit in 2020, 2021, 2022 and 2023
  • Rent reduction is also possible
  • The tenant will calculate whether moving on is worthwhile
  • Objection to chronically ill person against rent increase, conditions
  • Rental agreement 2019
  • Rent increase 2019 and 2020
  • maximum rent increase July 2019:
  • maximum rent increase July 2020:
  • No rent increase in 2021-July 2022
  • maximum rent increase July 2022:
  • maximum rent increase July 2023:
  • Rents in 2022 and 2023, how much will increase?

Maximum rent increase based on income, annual rent increase

The Rutte Asscher cabinet has started with it. According to the coalition agreement, this cabinet wanted rents to grow towards a market-based price. Everyone knows that the rental sector, and in particular the social rental sector, received large construction subsidies in the past, which allowed rents to remain moderate. The rental sector is a strongly government-regulated market, where the government determines the trend rent increase in a year. Part of the rental market has been liberalized with many more freedoms, but an important part is very much under the control of the State. In addition, quite a few people live crookedly. Given their income, they could pay a higher rent, but they do not do so because they live in a cheap rental home. While the government rules and the trend rent increase as of January 1 of the year are precisely intended to offer protection to people with smaller wallets.

Crooked living is a problem

For many years, skewed housing has been seen as a problem, because people who could pay more rent take the place of a lower-income household. Social housing has always been intended for the lower income and therefore skewed housing, although understandable, is inappropriate. People live cheaply and someone else ends up on the waiting list. Moreover, people with a higher income could also move on to purchasing a home. This flow could benefit the entire housing market, rental market and purchase market. Lower incomes hardly have any opportunity to move up, but they are confronted with high rents. Fortunately, there is housing allowance for them.

Rent increase made income-related

With the coalition agreement the bullet was decided, rents would become more income-dependent, which would solve the skewed housing situation. The rental market is now income-dependent up to the liberalization limit because the tenant can qualify for housing allowance and thus receive part of the rent back. But now there is a new element that the degree of rent increase has also been made income-related. This project started in 2013. There were three income categories, the higher the income, the higher the rent increase. The maximum rent increase already rose to 4% plus inflation in 2013, again in 2015, in 2016 this was 2.5% plus inflation, and in 2017 to a further 4.3% rent increase. In total, an increase of a maximum of 15 to 20% in the social rental sector. In response, the coalition agreement of the Rutte 3 cabinet announces no rent moderation for 2018-2021, on the contrary and certainly not for higher incomes.

So does the maximum rental price also depend on income?

If someone with a higher income occupies a home in the social rental sector, he can receive an additional rent increase, but the total rent can never exceed the rental limit of the social rental sector and also depends on the quality of the home (points system). . There is no limit for the liberalized rental sector.

The household income from two years ago counts for the calculation of the rent increase

The collective income of all residents, not just the tenant, counts for income. Landlords of social housing can request an income statement from the Tax Authorities about their household income, also known as a household statement. The Tax Authorities provide the landlord with a code for this and also report this to the tenant. No household statement may be requested for the private sector.

Rent increase according to rental amount approach and quality of the home

A rent increase that only takes into account income can also be very unreasonable if the home in which one lives is of insufficient quality. If two households with the same income live in two different homes, but one home is of much better quality than the other, in principle they both pay the same amount more in rent. The rental sum approach changes this. The rental sum approach is an agreement on the sum of all rents, whereby a difference can be made between tenants as long as the agreed increase on the total is achieved. It is less simple than just an income-related rent, but also more defensible.

Rent increase depending on the quality of the home

The rental sum approach involves a system as detailed in the agreement between Aedes and the Woonbond:

  • If the actual rent you pay is more than 80% of the maximum permitted rent as determined by the housing valuation system, the rent increase will be a maximum of inflation plus 1.5 percentage points.
  • In other cases, the rent increase will be lower and a rent reduction may even be applied.
  • The condition remains that the total rent for all tenants at the corporation may increase at most by inflation plus 1%. How this is distributed among all tenants (one has a 2.6% rent increase, the other much less) is up to the housing association to which your home belongs.

Rent liberalization limit in 2020, 2021, 2022 and 2023

The liberalization limit as of January 1, 2019 is 720.42, which is also the limit for the rental allowance. In 2020 the limit will be at a rent of 737.14, in 2021 at 752.33 and in 2022 the liberalization limit will be 763.47. From January 1, 2023, the rental limit for housing allowance will be a maximum rent of 808.06.

Rent reduction is also possible

Anyone who previously had to deal with an income-related rent increase can, if their income decreases, also receive a lower rent up to the rent before the rent increases, up to a maximum of two years ago. In addition, an exception can be made for the chronically ill and disabled.

The tenant will calculate whether moving on is worthwhile

A tenant in a social rental home would now be wise to calculate whether it is beneficial to stay in the same home or whether it is better to move on to an owner-occupied home or a more expensive rental home with more comfort.

Objection to chronically ill person against rent increase, conditions

As a chronically ill person, you can object to a rent increase with the landlord if you meet at least one of the conditions below:

  • The care plan shows that you will receive nursing or care at home for at least 1 year for at least ten hours per week.
  • A token of appreciation for an informal caregiver based on your attitude has been received from the municipality.
  • There is a care indication for a stay in a nursing home or care home.
  • There is professional help with general daily activities, ADL assistance with eating, washing or going to the toilet.
  • There is a decision under the Wmo or the Disabled Persons Act for adaptation of the home and the home has been adapted.
  • There is a statement from the GP or ophthalmologist showing that you (or someone else in your household) is blind.

Rental agreement 2019

The rental agreement stipulates that anyone who pays a high rent in relation to their income will not receive more than inflation in rent increases (1.6% in 2019). But rent increases for higher incomes can still exceed inflation. Above an income of 42,436 (reference year 2019), the rent increase as of July 2019 can be as much as 5.6%, inflation plus 4%.

Rent increase 2019 and 2020

The Rutte 3 cabinet is of the opinion that the sharper rent increases have too little effect on skewed residents; too many people with a reasonably high income still live in social housing, while they could also buy a home or rent a rental home in the private sector. . The plan is to increase the rent in one fell swoop to the new rent liberalization limit of approximately 720 euros. This could mean a significant rent increase for a number of affected households in 2019 and 2020.

maximum rent increase July 2019:

  • Income up to 42,436: 4.1%.
  • Income above 42,436: 5.6%.
  • Rooms, caravans, caravan pitch: 3.1%.

maximum rent increase July 2020:

  • Income up to 43,574: 5.1% (2.6% inflation 2.5%).
  • Income above 43,574: 6.6% (2.6% inflation plus 4.5%).
  • Rooms, caravans, caravan site: 4.1% (2.6% plus 1.5 percentage points).
  • For households with one or more AOW beneficiaries, the maximum rent increase as of July 1, 2020 is equal to 5.1% (2.6% inflation plus 2.5 percentage points).

No rent increase in 2021-July 2022

For July 2021-July 2022:

  • The income limits for social housing allocation are changing. For a single person, the income limit will be reduced from 39,055 in 2020 to 35,938 in 2021, for two-person households and families (3 and more people) the limit will be 43,126 in 2021 and 44,196 in 2022. Fewer single people will therefore be eligible for social housing.
  • Sitting tenants, especially singles, are more likely to be labeled as crooked residents (after all, the admission income has been reduced).
  • Rents will be frozen for residents of social housing and there will be no rent increase until June 30, 2022, including no income-related rent increase. Rents in the private sector will increase, at a maximum of inflation plus one percent.

maximum rent increase July 2022:

The maximum rent increase as of July 1, 2022 is a maximum of 2.3%. Freezing will expire and the inflation plus 1% rule will expire. On average, rents will increase by 2%, in other words not every corporation will increase rents the same. Furthermore, corporations may implement an income-related rent increase of a maximum of 100 euros:

  • for a single-person household with a gross income of 47,948 euros or more, there is a maximum of 50 euros extra on top of the maximum rent increase.
  • for a single-person household with a gross income of 56,527 euros or more, there is a maximum of 100 euros extra on top of the maximum rent increase (2.3% plus 100 euros).
  • for a multi-person household with a gross income of 55,486 euros or more, there is a maximum of 50 euros extra on top of the maximum rent increase.
  • for a multi-person household with a gross income of 75,369 euros or more, there is a maximum of 100 euros extra on top of the maximum rent increase.

maximum rent increase July 2023:

If rents also increase in line with inflation in 2023 (inflation of almost 10%), that’s the end of the story. Rents then become unaffordable. The question is what the cabinet will decide on this in due course.

Rents in 2022 and 2023, how much will increase?

The question is therefore how a rent increase in 2022 and 2023 will work out individually. Maximums apply, but a smaller rent increase is of course also permitted. The year 2023 seems to be a problem year with the current inflation. The rental allowance limit is then equal to 808.06.