VVD concerned about possible curbs on housing rents

rental housing prices
Photo credit: Trudo/Studio040

VVD Eindhoven is concerned about Minister of Housing Hugo de Jonge’s plan to regulate the rent of homes in the middle segment. As a result of this plan, the rent might drop by hundreds of euros. The VVD fears that this may cause a total stop to the building of houses because it is no longer financially interesting for investors, while there is currently a need for more housing.

NEPROM, the association of project developers, shares these concerns and has sent a letter to the minister. According to NEPROM, housing construction nationwide is in danger of falling back towards 50,000 homes per year in the coming period instead of the desired 100,000. In addition, investors such as pension funds and insurance companies have had new construction projects halted on a large scale because there is no return on them. Investors have to earn money to pay out pensions, for example.

Domino effect

VVD Eindhoven fears a domino effect. The investors make a loss on social housing, but have been able to  make up for this loss with, for example, rental housing in the middle segment. With this  possibility gone, the party expects a total stop to building, both for the social and the private sector. Therefore, VVD Eindhoven is raising the alarm with the municipal executive. The party wants to know the city council position in the situation. The party also wants to know what the consequences are for (future) projects in the city and specifically for the development of Fellenoord, where the project developers hold all the reins.

Source: Studio040

Translated by: Bob


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