Landlords Sell off Student Housing and Evict Tenants, Worsening Housing Crisis
The Affordable Rent Act aims to lower rent costs, but students are facing evictions as landlords sell properties, adding pressure to the already severe student housing shortage.
The new Affordable Rent Act, which came into effect on July 1, 2024, aims to make rent more affordable by introducing a points system that caps rent prices based on factors like the size, facilities, and sustainability of homes. While the law was intended to protect tenants from exorbitant rents, it has had the unintended consequence of pushing landlords to sell their rental properties, especially in the student housing market.
Many private landlords, faced with reduced rental income due to the capped rents and increased taxes on rental properties, are choosing to sell their homes. This is particularly problematic in student cities like Utrecht, Nijmegen, and Groningen, where students are being evicted as landlords seek to sell properties without tenants. In some cases, students are given a few months' notice, but finding a new room in the current housing market is a challenge due to the severe shortage of affordable student housing.
In Groningen, for example, landlords are increasingly selling off student homes due to the new regulations. Small, private landlords, in particular, are opting to sell their properties rather than comply with the new rules, which require them to offer individual room rental contracts for shared homes with three or more tenants. This further reduces the rental income for landlords and makes selling the property a more attractive option.
The law also tightens the definition of an "independent home," limiting how many tenants can live in a single property. Under the new rules, landlords can rent independent homes to a maximum of two people. For three or more tenants, each person must have a separate room rental contract, which often leads to lower rental income compared to renting the property as a whole.
The impact of these changes comes at a time when the Netherlands is already facing a student housing shortage, with a current shortfall of over 23,000 homes. Despite plans to build 16,800 new student homes by 2033, experts warn that the shortage could worsen, potentially reaching over 42,000 homes by the 2031/32 academic year.
This shortage has created significant stress and uncertainty for students. Many are now forced to search for new accommodations, which can take months or even years due to the competitive market. Student unions and housing organizations are urging the government to focus on building more student housing, particularly shared room complexes, to address the growing shortage and prevent more students from losing their homes.