Improvements to the Affordable Rent Act: the announced relaxations

With the Affordable Rent Act, the legislator has introduced a significant extension of the mandatory rent control regime to the mid-market sector, effective from 1 July 2024. In practice, a tension is now emerging between affordability on the one hand and investment viability on the other, particularly in the existing housing stock in urban areas. The sale of rental properties is a common occurrence.

In a letter to Parliament dated 20 April 2026, the Minister for Housing and Spatial Planning explicitly acknowledges this tension. Even before the planned review of the Act in 2027, she announces a number of targeted improvements, intended to address bottlenecks in the application of the system without compromising the fundamental principles of the Act.

Starting point: not deregulation, but a reform of the system

It is important that the government firmly upholds the core principle of the Affordable Rent Act: properties that, under the Housing Valuation Scheme (WWS), fall within the social or mid-market segments will remain subject to rent control. The announced measures are not so much aimed at broadening the scope, but rather at fine-tuning the valuation and pricing mechanisms within the existing framework.

The five measures announced

The Minister has identified five specific measures, the first four of which will be implemented by means of an order in council, whilst the fifth will follow a separate procedure:

1. Introduction of a WOZ value-based rent increase in the WWS
The maximum points total of 186 remains in place, ensuring that the property remains subject to rent control. However, in cases where the WOZ cap results in a downward adjustment of the points total, a rent increase may be applied that reflects the actual WOZ valuation.

2. Removal of penalty points for the lack of outdoor space
The current penalty points for homes without private or shared outdoor space will be removed. This change is particularly important for inner-city flats, where the lack of outdoor space is a structural issue and often unavoidable.

3. Greater weighting for small listed buildings (up to 40 m²)
For this category of properties, greater weight will be given to the WOZ value, in order to better reflect location and market demand.

4. Option of short-term tenancy agreements for all students
Unlike at present, short-term tenancy agreements will no longer be restricted to students from outside the municipality.

5. Extension of the new-build surcharge for mid-range rental properties
The existing 10% new-build surcharge on the maximum rent for mid-range rental properties will be extended by four years. This measure is not included in the draft decree but will follow a separate legislative process involving an online consultation and a parliamentary pre-notification. The aim is to offer investors greater certainty for longer when making decisions on new-build projects.

Entry into force and next steps

The first four measures are intended to come into force on 1 January 2027, or earlier if feasible. The extension of the new-build surcharge must be finalised by 1 January 2028 at the latest. A formal review of the Affordable Rent Act will then take place in the first half of 2027.

Conclusion

The detailed implementation of these measures will largely determine how stable and predictable the mid-rent sector will be in legal terms in the coming years.