Rent increase on July 1, 2025: What does it mean for landlords and tenants?

As summer approaches, many landlords are raising rents. In this blog, I provide an overview of the most important rules and points to consider for properties in the private, mid-market and social sectors.

Annual rent increase in the social sector

Strict legal rules apply to social housing:

• Maximum rent increase: Landlords can increase the rent by 5% from July 1, 2025, provided that the basic rent is €350 or more per month. If the basic rent is less than €350 per month, the landlord can increase the rent by €25 per month.

• Income-based rent increase: If the tenant has a higher income and rents an independent apartment, the landlord can also propose a higher rent increase. This is to prevent social segregation and to keep housing available for the target group with lower incomes. For a single-person household with an income between €57,413 and €67,366 and for a multi-person household with an income between €66,126 and €89,821, the rent may be increased by €50 per month. If the income of a single person household exceeds €67,366 or that of a multi-person household exceeds €89,821, the rent may be increased by €100 per month.

• Method of notification: The landlord must give the tenant written notice of the proposal at least two months in advance. This proposal must comply with legal requirements, such as justification and calculation of the new rent.

Please note that the Spring Memorandum 2025 states the government's intention to freeze social sector rents for two years. This would mean that rents in the social sector could not be increased in 2025. Housing associations have indicated that they will take legal action if necessary to prevent this. We will provide an update when more information about the new rules becomes available.

Annual rent increase in the mid-range and private sectors

Different rules apply to the private and mid-range sectors:

• Maximum rent increase: Rents in the private sector may be increased by a maximum of 4.1% throughout 2025. The rent for a mid-range dwelling may be increased by a maximum of 7.7% in 2025.

Affordable Rent Act

The distinction between rental properties in the social sector, the private sector and the intermediate sector has only been made since July 1, 2024. This is due to the introduction of the Affordable Rent Act. Before this law came into effect, there was only a distinction between social housing and private housing. If you have any questions about the Affordable Rent Act, please read my previous blog: The Affordable Rent Act: What does it mean for you as a landlord?

Questions?

If you are unsure about the amount of the rent increase or how it will be implemented, it is advisable to seek legal advice. Our tenancy law specialists are here to help you. We advise both landlords and tenants throughout the Netherlands.