Council of State slams rent freeze plan, unfair on some tenants

The government’s plan to freeze the rent of housing corporation social housing for two years conflicts with the principles of equal treatment and lacks a firm basis, the government’s most senior advisory body said on Monday.

The Council of State had been asked by housing minister Mona Keijzer to assess the plan, which was agreed by ministers during their spring financial negotiations after a vote in favour of the freeze in parliament.

Last Thursday, the Telegraaf reported that the council was poised to state that the draft legislation was put together hastily and would cause problems for housing corporations in preparing for the move. The council also said on Monday that the consequences for the wider housing market had not been properly assessed.

The plan was initially set to apply to all tenants but Keijzer later said it could only apply to housing corporation tenants, because it was too difficult to compensate private landlords for the loss of income. Private landlords own around 20% of social housing stock.

Housing corporations say that despite the €1 billion compensation package, the move will hit both new social housing development and the renovation of existing properties. They are taking legal action against the government.

The plan does not have majority support in the senate either, which is necessary for the freeze to go ahead, making its implementation extremely unlikely.

Keijzer said she is now working on a second report which she hoped to discuss with ministers this week. The four coalition partners have also had contact about the implications of the council’s review, she said.