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Rent increase

Affordability of housing is under pressure

The affordability of housing is under pressure. We believe that a rental home should be and remain affordable for you. For that reason, we allocate our rental homes to new tenants in a responsible manner and we work with the Nibud to help make your housing costs transparent.

 

Annual rent increase

Each spring, you will receive an email or letter from us announcing the annual rent increase for your home. Each year, the government determines the maximum rent increase for our government-regulated homes and there is a bill in the Senate for the liberalised rental contracts.

Government policy

Regulated rental contracts

The maximum rent increase for tenants with a regulated rental contract has been set by law by the government this year and is 5.8%. This is based on the collective wage development in the past year. Housing corporations are raising their rents by a maximum of 5.3% this year.

Liberalized rental contracts

For deregulated housing, the House of Representatives passed a bill on April 9 to set the maximum annual rent increase for deregulated housing for the next five years based on the lowest percentage of CAO wage development plus 1% or inflation plus 1%. The 1% surcharge is intended to offset new construction, renovation and preservation costs incurred by the homeowner. The average collective wage increase was 5.8% and the average inflation rate was 4.5%. This means that the maximum rent increase this year comes out to 5.5%.

*On May 1, 2024, the law governing the limitation of rent increases expires. The House of Representatives agreed to extend it on April 9, 2024, and kept the current cap (the lowest percentage of inflation and collective wage increases, plus 1). If the Senate also agrees in time (not later April 23, 2024), the maximum rent increase allowed from May 1, 2024 will remain (4.5% inflation + 1 =) 5.5%) for the remainder of calendar year 2024.

Vesteda policy

Regulated rental contracts

For 2024, we have set a maximum rent increase of 4%. Our proposed rent increase policy for regulated leases is thus lower than the legally set maximum percentages for regulated leases (5.8%).

Of course, we are capping the rent increase for tenants with regulated contracts at the maximum allowable rent according to the Housing Rating System.

Liberalized rental contracts

The rents of our deregulated leases are increased by a maximum of 4%. On July 1, 2024, the rents of our deregulated leases will be increased by inflation + 1%, with a maximum of 4%. To determine the exact inflation rate, the March consumer price index (CPI), as published by CBS (3.1%), is used. This is the change in the inflation rate of March in the current year compared to March in the previous year, unless a different period (e.g. February-February) is included in the lease agreement for determining the inflation rate. For February, the CPI is set at 2.8%.

So in 2024, rents for our regulated and deregulated leases will be increased by a maximum rent increase of 4%. Our rent policy is thus lower than the maximum rent increase set by the government, which is 5.8% and 5.5% respectively (inflation December 4.5% + 1% surcharge).

*On May 1, 2024, the law limiting rent increases expires. On April 9, 2024, the House of Representatives agreed to extend it, maintaining the current maximum (the lowest percentage of inflation and collective wage development, plus 1). If the Senate also agrees to the bill in time (by April 23, 2024), the maximum allowable rent increase from May 1, 2024 will remain (4.5% inflation + 1 =) 5.5%) for the remainder of calendar year 2024.

No income related rent increases

We believe that the best way to boost mobility in the housing market is to build more homes.

For this reason, we do not make use of the option of imposing an additional (income-related) rent increase on tenants who are able to pay more rent.

Rent increase

We gathered the most frequently asked questions and their answers about the rent increase.

What is the maximum rent increase in 2024 and when will I receive it?

We only increase the rent of your house once every 12 months. This is regulated by law. In the case of a renewed tenancy agreement or after renovation, the rent may be increased within the first 12 months of the tenancy agreement.

Regulated rental contracts

For 2024, we have set the rent increase for regulated leases at a maximum of 4%. There will be no income-related rent increase. We must inform our tenants at least two months before the rent increase takes effect on July 1. So this year you will receive a notice before May 1.

Liberalized rental contracts

The rents of our deregulated rental contracts will be increased by a maximum of 4% this year. To determine the exact inflation rate, the consumer price index (CPI) of March is used, as published by the CBS. This is the change in inflation from March in the current year to March in the previous year, unless a different period (e.g., February-February) is included in the lease for determining the inflation rate. For February, the CPI is set at 2.8%.

If you have a deregulated rental agreement then we are not required to send a rent increase letter. However, we would like to give our tenants timely and accurate information about the rent increase. We inform our tenants with a deregulated rental agreement at least one month before the rent increase on July 1. So this year, you will receive a notice before June 1.

When do I have a regulated or liberalized rental contract?

The commencement date of the rental contract and the associated (bare/basic) rent determines whether a residence is regulated or liberalised. You can find this information in your rental contract. In case of a regulated rental contract, maximum rental prices have been set by the government. There is also a maximum annual rent increase.

If, at the start of the rental agreement, the rent was lower than the liberalisation threshold, the property is in the regulated sector. For more information and requirements, please visit www.rijksoverheid.nl.

You have a rental home in the free sector or a liberalised rental contract if the initial rental price of the home was higher than the liberalisation threshold.


As of January 1, 2024, the liberalization threshold was increased to € 879.66 per month.

 

 

When and where can I object to rent increases (regulated contract)?

We obviously abide by the legal and contractual rules when raising the rent. Therefore, you cannot always object to a rent increase. You cannot object to a rent increase of 5.8% or lower, as this falls within the legal regulations. Should you wish to object on other grounds, please submit your objection to us by June 30, 2024. Defective maintenance is not a valid ground for objection. You can report this through My Vesteda. Your objection must meet some formal requirements. More information can be found at www.huurcommissie.nl.

What should be included in a notice of rent increase?

In the case of a regulated rental contract, we must send you a rent increase proposal at least two months before the effective date of the rent increase. You should therefore have received this proposal no later than 30 April if the rent increase takes effect on 1 July.

The letter of the rent increase should contain the following subjects:

  • commencement date of the rent increase
  • Current and new basic rent
  • percentage or amount by which the rent is to be increased
  • whether an income-dependent rent increase applies (including an income indication from the Tax and Customs Administration)
  • how you can lodge an objection.

Other conditions for rent increase:

  • the rent may not exceed the maximum rent according to the point system as a result of the rent increase
  • the rent may not be increased if the Rent Commission has temporarily reduced the rent due to maintenance defects
  • the rent may not be increased if prior to the commencement date of the rent increase a request for a rent reduction has been submitted to the Rent Commission on the grounds of maintenance defects.

In the case of a deregulated lease, there are no requirements for a possible rent increase letter.

Does Vesteda have an income-dependent rent increases this year?

This year there is no income-dependent rent increase. This means that we do not request income data from the tax authorities.

Why do I get a different rent increase than my neighbours?

A difference in rent between comparable dwellings can arise due to a difference in the effective date of the rental contract or the type of rental contract (regulated or liberalised).

The annual rent increase is mainly determined by the market rent. The market rent is determined on the basis of:

  • Market analysis based on market developments
  • Competitive analysis based on comparable houses/complexes
  • Age, mutation rate and vacancy of residences (in the complex)
  • Maintenance, finishing and location of residences
  • Affordability

The margin between the contract rent and the market rent determines the extent to which the rent can be increased. Within this space, we obviously adhere to the legal and contractual agreements.

What happens if you submit an objection to the rent increase?

If we uphold your objection, you will receive an amended proposal. If we declare your objection unfounded, we will explain in writing why we have rejected your objection.
If you accept this, you can still withdraw your objection in writing. You can do so before August 1, 2024.
If you wish to maintain your objection, we will send your objection to the Rent Commission within six weeks after July 1, 2024 and ask them to give a ruling. Of course we will inform you of this.

How do you adjust your rent payment, if the rent is increased?

If you use a direct debit, we will automatically adjust the monthly amount. If you have a standing order with your bank, then we kindly request you to adjust the amount as of 1-7-2024. If you would still like to authorize Vesteda for a direct debit, you can easily arrange this on the website mijn.vesteda.com.

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Will Vesteda apply a special policy for pensioners in 2024?

In 2022, retired tenants could make use of a coupon scheme under specific conditions. With this, we wanted to prevent tenants, whose pensions were not indexed in that year, from being unable to support themselves due to extreme inflation.

As in 2023, Vesteda will not apply a coupon scheme for retired tenants in 2024, as pensions have been indexed in recent years.

Contact Vesteda

Would you like more information about your rent increase? Feel free to send us a message through My Vesteda.

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