The rental market two years after the affordable rent act: Contraction, consequences, and opportunities

9 jun

Two years ago, on 1 July 2024, the Affordable Rent Act (Wet betaalbare huur) came into force. The legislation was designed to make rental housing more affordable for people with middle and lower incomes. But what have been the actual effects on the rental market? And more importantly, what opportunities are now emerging for tenants, buyers, and landlords?

What has changed?

The Affordable Rent Act has fundamentally changed the rules of the Dutch rental market. Previously, landlords were free to determine rental prices for properties with more than 143 points under the Housing Valuation System (WWS). The points-based system now also applies to the mid-market rental segment, covering properties up to and including 186 points.

As a result, homes that were previously offered in the private rental sector at prices well above market averages have been moved into the regulated mid-market segment, with a maximum monthly rent of €1,228.07.

Municipalities are also authorized to actively enforce compliance against landlords who charge excessive rents—and they are doing so.

Large-scale sell-off: Landlords leaving the market

The legislation has triggered a clear response from private landlords. Combined with higher taxation in Box 3 and increased transfer taxes on investment properties, renting out residential property has simply become less profitable for many private investors.

The result has been a large-scale sell-off of rental properties.

In the fourth quarter of 2024, investors sold more homes than at any point since 2021, and this trend continued throughout 2025. In fact, one in six homes sold through an NVM real estate agent in 2025 was a former rental property. In total, tens of thousands of homes have been withdrawn from the rental market.

As a consequence, the supply of privately rented homes has shrunk considerably. While there were still approximately 1.2 million privately rented homes at the beginning of 2024, that number has steadily declined. Competition among tenants in cities such as Amsterdam, Utrecht, and Eindhoven therefore remains extremely intense.

Consequences for tenants: Less supply, higher prices in the private sector

The paradox of the Affordable Rent Act is clearly visible in the rental market. While the legislation has reduced or capped rents for existing tenants in the mid-market segment, the supply of available rental properties has fallen significantly.

For people actively searching for a rental home, this means longer search times and increased competition.

In the private rental sector—properties with 187 points or more—rents have continued to rise. By the end of 2024, the average monthly rent in the private sector had already reached approximately €1,730. Today, more than 40% of private-sector rental homes command rents exceeding €2,000 per month.

Those who cannot or do not wish to buy a home, but also do not qualify for social housing, face an increasingly tight market.

Consequences for the housing market: More opportunities for first-time buyers

Every challenge creates opportunities. The sell-off wave has had a direct positive impact on the owner-occupied housing market, particularly for first-time buyers.

Many of the homes released onto the market are smaller apartments within affordable price ranges—the exact segment sought by first-time buyers.

In 2025, a record 75,000 first-time buyers purchased a home through an NVM real estate agent. House price growth has also slowed considerably in 2026 compared with 2025. Experts expect prices to rise by 3% to 5%, compared with approximately 8% in 2025. Buyers are no longer automatically drawn into bidding wars far above the asking price.

The market is stabilizing: Positive signs ahead

There are cautious but clear indications that the market is moving toward a new equilibrium.

The expectation is that the large-scale sell-off wave will largely run its course during 2026. Most landlords who wanted to sell have already done so. What remains is a market consisting primarily of landlords who consciously choose a long-term investment strategy.

In addition, the Dutch government has taken steps to improve the investment climate. In 2026, the transfer tax on investment properties was reduced from 10.4% to 8%, which may encourage new investors to enter the market.

For tenants currently living in a mid-market rental property, tangible benefits have already been achieved. Rents are now more closely aligned with the actual quality of the property, while excessive annual rent increases have largely become a thing of the past.

What does this mean for you?

Whether you are looking for a rental property, considering purchasing a home, or planning to rent out a property, the market is changing and requires expert guidance.

As real estate professionals, we know the local market inside and out and can help you take advantage of the opportunities that do exist.

Bianca Jamoel