Why the government is rolling things back

The Affordable Rent Act was meant to protect tenants by extending rent caps into the mid-market segment (middenhuur). In practice, it had an awkward side effect. Institutional investors and private landlords started selling off their properties instead of letting them out under the new, tighter price limits.

To get supply moving again, and to give the struggling construction sector a push, the government has now introduced three changes.

First, a new-build incentive. If construction on a residential project starts before 2032, the landlord can charge up to 10% more rent for the next twenty years.

Second, the removal of the WOZ cap. The WOZ value is the official municipal property valuation, and until now its weight in the points calculation was capped. That stopped flats in expensive city centres from automatically being pushed into the free market. The cap is now going, so high urban property values will count for more again.

Third, changes to how property features are scored. Under the original law, a flat without a garden or balcony picked up negative points. That penalty is being scrapped. National monuments (rijksmonumenten) will also gain points, which pushes more high-end city flats back into the unregulated free sector.

The 2026 rent-increase caps

The maximum annual rent increases for 2026 are now confirmed, and the one that applies to you depends on your tenancy category.

For social housing and rooms, the cap is 4.1%. From 1 July 2026 this applies to all self-contained properties under 143 points and to all student rooms. It is based on a three-year average of inflation.

For the free sector (vrije sector), the cap is 4.4%. This covers fully unregulated properties and it stays in place until 2029. The figure is tied to recent inflation (inflation plus one percentage point).

For the mid-market (middenhuur), the cap is 6.1%, aligned with collective wage-growth trends.

What this means for your current contract

If you already rent a home in the Netherlands and signed your lease before these 2026 changes were drafted, the short answer is that you are protected.

Dutch rental law does not apply rule changes retroactively. A landlord cannot use the new point-system relaxations to bump up your current rent. The only legal annual increase is the statutory percentage (4.1%, 4.4% or 6.1%) listed above, and your rent still cannot exceed the maximum points threshold that applied on the day you signed.

One useful detail to keep in mind. If your older free-sector contract includes a clause like "CPI + 3%", the statutory 4.4% maximum overrides it automatically.

What this means if you are house-hunting

If you are searching for a home on Pararius later this year, the market will look a little different from 2024 or 2025.

City-centre rents are likely to rise. With the WOZ cap gone and the outdoor-space penalty scrapped, centrally located flats without balconies will probably move out of the regulated mid-market and into the free sector, with higher asking prices to match.

Supply should also start to recover. The 10% premium on new-builds is there to encourage developers, and over time it should bring more new, professionally managed rental homes onto the market.

The Pararius take

The 2026 changes are the government's attempt to walk a line. The caps that protect existing tenants stay in place, but the rules are loosened just enough to keep developers building.

When you receive your annual rent-increase letter, or you are sizing up a new listing, check the numbers yourself. Make sure your landlord is using the points calculation under the official Housing Valuation System (Woningwaarderingsstelsel, or WWS) that applied on the date you signed, and stick with established, verified letting agents.