Message to Tenants' Association members

Subject: National Performance Agreements

date November 20, 2024

 

Dear members,

In 2024, the highest rent increase for social tenants in more than 30 years was expected, and an even higher rent increase of more than 6 percent is looming for 2025. In order to prevent this drama, the Woonbond has been negotiating with the government and the housing corporations for months since the end of the summer, within the framework of the National Performance Agreements. These negotiations have now failed. After the last discussions with the minister, the Woonbond has concluded that there is currently no prospect of a proposal that we want to present to our members.

 

Cabinet proposal leads to more rent increases

The government did not want to go further than a reduction to 4.5%, which would still be a sky-high rent increase. In addition, this proposal also required that more rent be paid for well-insulated homes in the long term for new leases, via the so-called Passend Toeslagen. This was to compensate for the loss of rental income of the corporations (with a 4.5% rent increase instead of 6%). The government did not want the savings that the government would have until then on the costs of the rent allowance to benefit public housing. The Woonbond wanted the saved rent allowance to be used as a new construction subsidy for social housing. If the Woonbond did not agree to this proposal, the government would simply assume the unacceptably high rent increase of more than 6% in 2025.

 

No support for sky-high rent increases

The Woonbond has indicated that it cannot agree with this and will not give in to this pressure. Tenants cannot and do not want to pay such a hefty rent increase again. They cannot afford it because groceries and daily life have simply become too expensive. They do not want to pay it because it is not fair and just that tenants have to pay for the social task of new construction and sustainability with their monthly rent. The housing shortage is a social problem. It is unfair that only tenants pay for the solution, that should be done by society as a whole, i.e. the government. In fact, the government continues to impose profit tax on corporations, while these are non-profit organizations. That means less new construction and higher rents.

 

Inflation-following rent more than enough

During the negotiations, the Housing Association made various proposals that would still allow housing associations to invest significantly and carry out approximately 95% of their social housing task up to 2035.

From conversations with many of you, it appears that there is a willingness to moderate rent increases, in line with the legislation for the private sector tenants where the legal system protects tenants. Namely the lower of the two systems: either inflation or wage increase. That would be around 3.5% for 2025, more than enough!

 

The Woonbond is also in favour of agreeing on a permanent system that does not cause unrest every year, in the interest of tenants and landlords. That is why we are in favour of a multi-year average of inflation, with a structural limit (a "cap") of 3.5%. This can then also be legally anchored. This provides clarity for landlords and legal protection against high outliers for tenants.

 

With lower rental income, the necessary investments in new construction remain possible

After all, the Woonbond also wants to see a lot more social housing and is also there for home seekers who now have to wait far too long for a home. In our opinion, the housing association sector was also able to cope well with the financial space that the Woonbond proposals offered and must first really start performing well and get the construction figures up to par before the tenant can be charged for extra money.

 

Member involvement in the National Performance Agreements

The Woonbond involved its members in the efforts for the evaluation and recalibration of the National Performance Agreements by conducting an evaluation in October. On 19 November, there was a webinar in which the work organisation informed its members about the latest state of affairs. In between, the work organisation also held discussions with individual tenant organisations, tenants and the Association Council.

 

Further consequences for the National Performance Agreements

The National Performance Agreements concern availability, affordability, sustainability, liveability and also the (financial) boundary conditions. At this moment it is not yet clear what the consequences of stopping the negotiations are for all themes. The coming period will have to show whether and in what way national agreements will be made on the various themes. Fighting together with members The Woonbond calls on the House of Representatives to intervene: "If the promised security of existence is still worth anything, then the House of Representatives will absolutely not accept a rent increase above inflation." In the coming period, the Woonbond wants to fight together with its members for a moderate rent increase and strong social housing. We will inform you in the coming period about actions on how we can jointly make our voices heard locally, regionally and nationally.

 

Kind regards, Zeno Winkels

 

Background information on the income-related rent increase

(In response to questions from tenants, we hereby provide the information that the Woonbond has on its website. This information is based on data from 2024. This information is intended to provide an idea of ​​how this is achieved and which data is used.)

 

Income-related rent increase

When is an 'income-related rent increase' permitted? And what should you pay attention to as a tenant?

If your household income is above a certain threshold, your landlord may request an 'income-related rent increase' in 2024. This concerns the income of your entire household, i.e. the (joint) income of you and any housemates aged 23 and over.

 

The income limits here are:

• Living alone

Between €52,753 and €62,191 –> €50 rent increase

Higher than €62,191 –> €100 rent increase

• Not living alone

Between €61,046 and €82,921 –> €50 rent increase

Higher than €82,921 –> €100 rent increase

 

What should tenants pay attention to?

Are you being offered an income-related rent increase? Then your landlord must demonstrate that your income is high enough for this. The landlord can demonstrate this by sending the income indication that he requested from the Tax Authorities in February 2024.

 

The income indication concerns:

• the composition of your household in February 2024
• the (joint) income that the adults in your current household had in 2022.

 

But the following applies to the rent increase:

• the composition of your household on the effective date of the rent increase
• the (joint) income that the adults in your current household had in 2022. Was the income in 2023 lower? Then the income from 2023 counts.

 

Lower income

• did you retire in 2023;
• you became unemployed;
• or is there another reason why your household income was lower in 2023 than in 2022?

Then an income indication may have been used that is no longer correct, resulting in a rent increase that is too high. You can then successfully object.

 

Household changed

It may also be that the composition of your household has changed.

For example:

• you started living alone between February and July 1;
• your adult child with their own income has left home;
• you lost your partner.

The household income that the tax authorities assume is therefore no longer correct.  

Source: www.woonbond.nl

 

(Editors note) Important:

This concerns an objection to the income-related rent increase.

You can no longer file an objection.