There is increasing evidence that landlords are keeping housing rents in check, according to new research by Dutch property management organisation VGM.
The research shows rents rose by an average of 1.4% per m2 in the second quarter of 2020, compared with the year-earlier period. At the same time, there was a 13.5% rise in the number of new contracts being agreed in Q2.
Rental prices are going up less than they were, and ‘this is confirmation that institutional investors are adopting very moderate rental increase strategies in their long-term targets, without extra regulation,’ VGM chairman Eric Verwey said. Many Dutch private landlords, such as Holland Metropole partner Bouwinvest, have a strategy to moderate rent increases in the non-rent controlled sector, and have been taking tenants’ financial situations into account.
‘We do see that the square meter prices is going up slightly more than the ‘real’ rent, which shows more smaller units are being leased,’ Verwey said.
Social housing rents in the Netherlands are already strictly controlled.
Illustration: ‘For rent’ board on a property.
Caption: Landlords are moderating rent increases. Photo: DutchNews.nl