Crash course in rent increases for landlords

Since the introduction of the Affordable Rent Act, many landlords of residential property have had questions about annual rent increases. Below is a summary of how the rent increase will work in 2025 across different rental segments, and what applies to existing tenancy agreements for properties that fell under the free market until July 1, 2024, but now fall into the mid-market rental segment.

Rent increase in the low segment (social housing)

In the low segment (the former social housing system), the rent can be increased following a prior proposal from the landlord.

This proposal must:
- be made in writing;
- be made at least two months before the rent increase takes effect; and
- include the following information:
   - the current rent;
   - the percentage or amount of the rent change;
   - the new rent amount;
   - the effective date of the rent increase;
   - the way and period in which the tenant can object to the increase.

The rent in the low segment may be increased as of July 1, 2025, meaning the proposal must be submitted before May 1, 2025.

Objection by the tenant

If the tenant disagrees with the rent increase, they may object in writing to the landlord before the effective date. The landlord must then submit a request to the Rent Tribunal within six weeks after the proposed effective date to have the rent increase reviewed.

Rent increase for the low segment

In 2025, the rent increase for the low segment is a maximum of 5%, unless the tenant has a middle or high income. Landlords can verify this via the Tax Authority's income-based rent increase portal.

For tenants with a middle income, the increase may be up to €50.
For tenants with a high income, the increase may be up to €100.

The rent may not exceed the maximum rent as determined by the Housing Valuation System (WWS).

Mid segment (mid-market rent)

The rent increase rules for the mid segment only apply to tenancy agreements entered into from July 1, 2024 onward.

In this segment, the rent increase is determined by a clause in the tenancy agreement. There is no need for a written proposal, nor is an announcement of the increase required, although doing so may be preferred. The agreement specifies the month in which the rent may be increased annually.

Rent increase for the mid segment

In 2025, the rent increase for the mid segment is capped at 7.7%. If the contract stipulates a lower percentage, that lower rate applies.

The rent may not exceed the maximum rent as per the WWS.

Objection by the tenant

The tenant may initiate proceedings with the Rent Tribunal within four months of the effective date of the rent increase.

Free sector (high segment) 

In the free sector, the rent is also increased based on a clause in the tenancy agreement. As in the mid segment, no written proposal or advance notice is required, although it may still be preferred. The contract states which month the rent may be raised each year.

Rent increase for the free sector

In 2025, the rent increase in the free sector is capped at 4.1%. If the contract stipulates a lower percentage, that lower rate applies.

Objection by the tenant

The tenant may initiate proceedings with the Rent Tribunal within four months of the rent increase taking effect.

Ongoing tenancy agreements in the free sector

For tenancy agreements that were already in place before July 1, 2024 and fell under the free sector, but now qualify as mid-market rent under the new rules, the maximum rent increase of the free sector (4.1%) still applies. The mid-market rent rules only apply when a new agreement is signed.

Emergency legislation

On February 18, 2025, a draft emergency law was submitted to freeze rents in all segments for one year starting July 1, 2025. The Council of State has already issued a negative advisory opinion. The bill still has to be reviewed by the House of Representatives. The progress of the legislative process can be followed via this link: Emergency Bill. The bill is not expected to pass.

Landlords and tenants who would like more information can contact Claudia van Meurs-Janssens.