The freeze on social rents at housing corporations, as announced in the Spring Memorandum, offers relief for many tenants. However, according to housing market economist Matthijs Korevaar of Erasmus School of Economics, a significant group is being forgotten: low-income people who rent in the private sector. In an interview with the Dutch broadcaster BNR Nieuwsradio, Korevaar expresses concerns about this inequality.
‘Rent policy lacks a broad approach for low incomes’
Associate Professor Korevaar states that freezing rents at corporations does not reduce the pressure on the housing market and can even be counterproductive. He emphasises that many people with low incomes are dependent on private rental properties, where rents are often higher. According to the Woonbond, social tenants in the private sector pay an average of €81 more per month than tenants at corporations. Without a rent freeze, this difference could increase to €140 per month.
The current measure only applies to social rental properties from housing corporations. Private landlords may increase rents by a maximum of 5% from 1 July, unless otherwise decided. The Woonbond advocates that the rent freeze should also apply to private social housing in order to prevent legal inequality. In addition, housing associations warn that the rent freeze will significantly reduce their investment capacity.
Korevaar emphasises that it is important to recognise the difficult reality of some tenants, but that it is difficult to do so via the rental market. He advocates a broader approach that also supports private tenants with low incomes.
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Click here for the article in question (including audio) on the BNR Nieuwsradio website. For more information, please contact Ronald de Groot, Media & Public Relations Officer at Erasmus School of Economics: rdegroot@ese.eur.nl and mobile +31 6 53 641 846.
