Recent changes to the Affordable Rental Act fail to support the mid-tier rental market. ABN AMRO concludes that Housing Minister Elanor Boekholt-O’Sullivan’s tweaks are insufficient. Experts argue that private landlords will continue to leave the market. This trend will persist as long as the current tax treatment remains unchanged.
Policy effects underestimated
The bank’s researchers believe the minister underestimates how tax policy influences investor behaviour. Many property experts want to reverse the original rental law. Although that law aimed to protect tenants, specialists warned it would worsen the housing shortage. Stricter regulations and lower returns now drive investors away quickly.
Investors exit the market
ABN AMRO notes that this trend directly harms tenants. The supply of mid-range rental homes is drying up. This lack of supply leads to higher costs and fewer options for residents. It is not just small-scale landlords losing interest. Large institutional investors are also pulling back from the Dutch market.
Market outlook
Ultimately, the bank predicts that the rental supply will continue to shrink without significant fiscal changes. The current policy environment creates a mismatch between social goals and market realities. Until the government addresses investor returns and tax burdens, the essential mid-tier housing segment will remain in crisis.
@ anp | NEWS BARINPORT
