The Council of State has issued a highly critical assessment of the coalition’s plan to freeze social rents for two years, advising against submitting the proposal to the House of Representatives. The council’s judgment highlights significant concerns about the plan’s preparation, potential unequal treatment of tenants, and negative consequences for housing construction and sustainability.

The Council of State deems the plan ‘prepared carelessly,’ citing the haste in its conception and the failure to follow standard legislative procedures. This lack of due diligence has resulted in several problematic outcomes, including the unequal treatment of tenants.

The plan only covers tenants renting social housing from housing corporations, excluding approximately half a million tenants renting from private landlords. The Council argues that this distinction creates unequal treatment between two groups of tenants in essentially the same situation, violating the principle of equality. The Minister has failed to provide ‘objective justification’ for this unequal treatment.

The Council of State also warns that the reduced rental income for housing corporations will lead to a significant decrease in the construction of new rental homes and a reduction in investments in making existing homes more sustainable. This outcome contradicts the government’s goal of alleviating the housing shortage and its constitutional duty to ensure adequate housing. The coalition parties also appear to have underestimated the necessary compensation for housing corporations, with the reserved 1 billion euros deemed insufficient to cover the anticipated losses. Housing corporations will miss an estimated 1.5 billion euros per year, potentially leading to financial difficulties for many.

The plan to freeze social rents originated during late-night negotiations between the coalition parties. While the Council of State acknowledges the intention to help vulnerable tenants, it argues that insufficient consideration has been given to the implementation and consequences of the measure. Housing Minister Mona Keijzer and NSC Member of Parliament Merlien Welzijn have also voiced criticisms of the plan. The opposition has condemned the plan as ‘reckless politics’ and ‘arsonist politics’.

Given the harsh criticism, the likelihood of the rent freeze plan gaining sufficient support in the House of Representatives appears slim. Even if it passes there, it faces further scrutiny in the Senate, where the coalition lacks a majority and will need to secure support from the opposition. The plan’s future is uncertain, and its failure would be a significant setback for PVV leader Geert Wilders, as freezing rents was a key election promise.