The Council of State has issued a highly critical assessment, advising against the proposed plan to freeze social rents, citing significant legal and financial concerns. This negative judgment casts serious doubt on the future of the proposal.
The Council of State deems the plan ‘carelessly prepared’ due to the rushed legislative process, highlighting ‘serious legal objections’. The advisor points to the haste in which the bill was created and the lack of adherence to standard legislative safeguards.
The proposed rent freeze creates ‘unequal treatment of tenants’ by only applying to those renting from housing corporations, excluding approximately half a million tenants renting from private landlords. According to the Council, this distinction violates the principle of equality because it differentiates between two groups of tenants in similar situations without proper justification.
The Council of State also warns that the reduced rental income for housing corporations will lead to the construction of 85,000 fewer rental homes and hinder sustainability efforts on approximately 365,000 homes. This outcome contradicts the government’s objective to address the housing shortage and its constitutional obligation to provide adequate housing.
The Council states that the allocated compensation of 1 billion euros is insufficient to offset the estimated 1.5 billion euros in annual losses for housing corporations, potentially causing financial difficulties for many.
The plan to freeze social rents originated during a late-night negotiation between coalition parties, driven by the desire to provide financial relief to vulnerable tenants. While the Council of State acknowledges the good intentions behind the proposal, it emphasizes the insufficient consideration given to its implementation and consequences.
The plan has already faced criticism from Housing Minister Mona Keijzer and NSC MP Merlien Welzijn, with opposition parties labeling it as ‘reckless politics’ and ‘arsonist politics’. Given the strong objections raised, the rent freeze plan faces an uncertain future in the House of Representatives and the Senate.