The Council of State has strongly criticized the Dutch government’s proposal to freeze social housing rents for two years, stating it violates equal treatment principles and lacks sufficient justification. This opinion was delivered after Housing Minister Mona Keijzer requested an assessment of the plan, which was conceived during spring financial negotiations following a parliamentary vote.

The council argues that the legislation was hastily drafted and will create difficulties for housing corporations in their financial planning. Furthermore, the wider implications for the housing market have not been adequately considered.

Initially, the rent freeze was intended for all tenants, but Minister Keijzer later narrowed its scope to housing corporation tenants only, citing the difficulty of compensating private landlords, who own approximately 20% of the social housing stock.

Housing corporations argue that even with the €1 billion compensation package offered by the government, the rent freeze will negatively impact both the construction of new social housing units and the renovation of existing properties. They are pursuing legal action against the government.

The proposed rent freeze also faces challenges in the Senate, where it currently lacks the necessary majority support for implementation, making its enactment improbable.

Minister Keijzer has announced that she is preparing a second report on the matter, which she hopes to discuss with her colleagues this week. The coalition partners have also been in communication regarding the implications of the Council of State’s review.