The Council of State has strongly advised against a coalition plan to freeze social rents for two years, citing serious legal objections and inadequate preparation. This negative assessment casts significant doubt on the future of the proposal.

The Council stated the plan was “carelessly prepared” due to haste and a failure to follow standard legislative procedures, resulting in “serious legal objections”.

A key concern is the unequal treatment of tenants. The rent freeze only applies to those renting social housing from corporations, excluding approximately half a million tenants renting from private landlords. The Council argues this distinction violates the principle of equality, as the government has not provided sufficient justification for treating these two groups differently.

The Council also predicts that the lower rental income for housing corporations will lead to 85,000 fewer new rental homes being built and a reduction of approximately 365,000 in the number of homes made more sustainable. This outcome contradicts the government’s objectives to alleviate the housing shortage and its duty to provide adequate housing.

Furthermore, the Council believes the one billion euros allocated for compensation to the corporations is insufficient. With corporations expected to lose approximately 1.5 billion euros per year, many could face financial difficulties in the short term.

The rent freeze plan originated during a late-night negotiation between coalition parties, driven by a desire to provide financial relief to vulnerable tenants. However, the Council of State concludes that the implementation and consequences of the measure were not adequately considered.

The plan has already faced criticism, including from Housing Minister Mona Keijzer and NSC MP Merlien Welzijn. Opposition parties have labeled it as “reckless politics” and “pyromaniac politics”.

Given the strong objections and lack of support, the rent freeze plan’s prospects in the House of Representatives and the Senate appear dim. Failure to pass the measure would be a significant setback for PVV leader Geert Wilders, as it was a key election promise.