The number of privately-owned rental homes in the Netherlands rose by a net 67,000 between 2021 and 2023, and most of the growth was down to new build and the transformation of existing buildings, according to Dutch national statistics agency CBS.

The rise takes the number of homes in the Netherlands in the hands of investors to 14.3% of the total, or some 1.2 million. Of them, 385,000 are in the hands of big investors rather than private individuals or foundations. 

The Dutch private housing market is dominated by small players with just one or two homes, often as a pension provision and just 1,000 investors have more than 50 properties on their books, the CBS figures show.

New homes

The figures also show the private sector bought 78,000 of the new homes to come on the market in the two years under consideration – or 40% of the total. They also bought 70% of the homes derived from transformations or dividing existing buildings up into smaller residential units. 

Developers have warned that Dutch government plans to increase rent controls to cover more properties in the Netherlands will lead smaller investors in particular to sell, and there is some evidence this happening. Smaller homes, of up to 40 square metres, are almost certain to fall under the new rent control limit if it comes into effect later this year. 

MPs voted in April to extend the rent control limit to around €1,100 but the measure still has to pass through the upper house of parliament. Rents in the Netherlands are determined according to a point-based system, with points awarded for size, sustainability and facilities as well as location and property value. 

Developers welcome clarity

Dutch developers and investors have welcomed the clarity brought by the vote, in particular the decision by MPs to accept two crucial amendments covering the 10% rental supplement for new property and more recognition in the points system for energy-saving measures. 

“The law will not change the complex market conditions we are currently facing but does end the uncertainty, and that is of great importance to our members,” said Judith Nobart-ten Hoor, director of investors association IVBN. “Domestic and foreign capital requires stable policy and a healthy investment climate.”

Fahid Minhas, director of developers’ organisation NEPROM also welcomed housing minister Hugo de Jonge’s own concerns about the property transfer tax, which is currently 10.4% for private sector developers. De Jonge admitted it is “on the high side” from an international perspective and said he is prepared to tackle it in the autumn – should the current government still be in power.